                                 CODE OF VIRGINIA

C.I.F. OR C. &#038; F.: &#8220;NET LANDED WEIGHTS&#8221;; &#8220;PAYMENT ON
ARRIVAL&#8221;; WARRANTY OF CONDITION ON ARRIVAL (§ 8.2-321)

Under a contract containing a term C.I.F. or C. &#038; F.

1. Where the price is based on or is to be adjusted according to &#8220;net
landed weights,&#8221; &#8220;delivered weights,&#8221; &#8220;out turn&#8221;
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.