Which statement is correct regarding CIF agreements?
A) Risk of loss occurs when goods are identified to the contract.
B) Risk of loss occurs when the goods are delivered to the buyer.
C) Risk of loss remains with the seller for 5 days after the sale.
D) Risk of loss remains with the seller for 5 days before the sale.
E) The seller puts the goods into the possession of a carrier before the risk passes to the buyer.

Question

Quizplus · Accepted Answer

Under CIF (Cost, Insurance, and Freight) agreements, the seller is responsible for covering the cost of shipping and insurance to ensure the goods reach the buyer's destination. The risk of loss or damage to the goods passes from the seller to the buyer when the goods are handed over to the carrier, not based on a specific number of days before or after the sale, nor immediately upon identification of the goods to the contract or their delivery to the buyer's premises.

Which Statement Is Correct Regarding CIF Agreements