The obligations of the seller in C.I.F. contracts

Abstract

This thesis seeks to analyse in detail the obligations of the party to a contract who undertakes to sell goods c.i.f. During the course of this study the position of the seller will be seen generally under the contract of commercial sale but particular emphasis will be placed on the duties that arise from the c.i.f. clause itself. In order to achieve a thorough study of the c.i.f. contract it is necessary to define what constitutes the essence of this contract and why it should be distinguished from ordinary contracts of commercial sale. In this light it will be essential to distinguish between a sale of goods and a sale of documents. This is examined in Chapter 1, where it results that the c.i.f. contract partakes of both. In spite of the diverse and conflicting legal principles existent m the different nations, it has been attempted to achieve uniformity in the interpretation of this trade term. In the second, third and fourth chapter of this work it is intended to scrutinize the duties of the c.i.f. seller as understood in the world of international trade and to place these obligations within the sphere of Maltese commercial law. The fifth chapter aims at clarifying what is probably the most contested issue in disputes arising from c.i.f. contracts, that is, the passing of property and risk. Here we will observe the lack of concordance among the different legal systems as to the time of such transfer. The effects of containerization will also be elucidated in this context. Finally, Chapter 6 studies the potentially far-reaching effects of electronic commerce on international trade. While it is evident that in the case of ordinary contracts of international sale we are on the verge of paperless transactions, a number of obstacles still need to be surmounted in order to have an analogous situation in the case of c.i.f. contracts.