第二章Case 1: An exporter exports a batch of Christmas gifts to an English buyer with CIF London and as the Christmas gifts are seasonal, they contract that the buyer shall open a credit with the seller before the end of September and the seller shall ship the goods to Hamburg not later than 5th December. Or else, the buyer has the right to cancel the contract and get refund from the seller. So is the amended contract still a CIF contract? Why? Analysis: The contract is not a CIF contract because: (1) CIF contracts are shipment contracts, according to which the seller should deliver the goods on board the nominated ship at port of loading for shipment to the destination within specified time and bear no risks or expenses during the shipment of the goods. In the above case, the seller shall ship the goods to Hamburg not later than 5th December or else, the buyer has the right to cancel the contract. This substantially alters the character of shipment contracts. (2) CIF is used for symbolic delivery in which the seller delivers the goods against documents while the buyer pays against documents. In the above case, the seller shall refund to the buyer if settlement have been made. This alters the characters of symbolic delivery. In conclusion, contract in the above case is not a shipment contract anymore. Case 2: An exporter in Beijing contracts with an English customer to export a lot of goods. After negotiating the price, our exporter insists on FCA Beijing while the English customer insists on FOB Tianjin. Please explain the reasons. Analysis: (1) the seller insists on FCA Beijing as he fulfills obligation once he delivers the goods to the carrier in Beijing and risks are tran...
