Seller in Georgia and buyer in the Netherlands enter into a contract for the sale of goods, CIF port of Amsterdam. The seller refused to ship. The buyer brings an action for damages. In the United States, a court would probably rule that:

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CIF (Cost, Insurance, and Freight) contract requires the seller to bear the cost of shipping, loading, and delivering the goods to the named port of destination, and to procure marine insurance against the risk of loss of or damage to the goods during transit. The seller breached the contract by refusing to ship the goods, and the buyer can recover damages. Under CIF contract, the risk of loss or damage to the goods passes from the seller to the buyer when the goods are delivered on board the ship at the port of shipment, and the buyer is obligated to pay upon presentation of the shipping documents, including the bill of lading, packing list, and insurance certificate. The damages for breach of contract are usually based on the difference between the contract price and the market price of similar goods at the port of shipment, as that is the market the buyer would have purchased the goods in if the seller had fulfilled their obligation to deliver.

Seller in Georgia and Buyer in the Netherlands Enter into a Contract