ABSTRACT
Trade terms, primarily devised for mercantile convenience, over time came to be variously interpreted. Cost, insurance, freight (CIF) contracts, for instance, were often misconstrued as contracts for the delivery of goods at the port of arrival since they named the port of destination. This chapter focuses on the interpretation of CIF and Free on Board (FOB) terms and their variants, such as FOB with additional services, Free Alongside Ship (FAS) and C&F, under English law, before providing an outline of the rules of interpretation under INCOTERMS 2010. The seller is under an obligation to tender an insurance policy under a CIF contract. Anything short of an insurance policy is insufficient to discharge the seller's obligation to tender a policy. Only insurance policies are transferable, which means that the buyer can sue the underwriter on the policy.
