CODE OF VIRGINIA

C.I.F. OR C. & F.: “NET LANDED WEIGHTS”; “PAYMENT ON
ARRIVAL”; WARRANTY OF CONDITION ON ARRIVAL (§ 8.2-321)

Under a contract containing a term C.I.F. or C. & F.

   (1.  Where the price is based on or is to be adjusted according to “net
   landed weights,” “delivered weights,” “out turn”
   quantity or quality or the like, unless otherwise agreed the seller must
   reasonably estimate the price. The payment due on tender of the documents
   called for by the contract is the amount so estimated, but after final
   adjustment of the price a settlement must be made with commercial promptness.

   (2.  An agreement described in subsection (1) or any warranty of quality or
   condition of the goods on arrival places upon the seller the risk of ordinary
   deterioration, shrinkage and the like in transportation but has no effect on
   the place or time of identification to the contract for sale or delivery or on
   the passing of the risk of loss.

   (3.  Unless otherwise agreed where the contract provides for payment on or
   after arrival of the goods the seller must before payment allow such
   preliminary inspection as is feasible; but if the goods are lost delivery of
   the documents and payment are due when the goods should have arrived.

HISTORY: 1964, c. 219.