D.A.D. Enterprises Inc. (DAD) is located in Whitehorse. It has entered into a contract for the purchase of goods from Finnigan Fishing Rods & Reels Ltd. In accordance with the terms of the contract, Finnigan must, among other things, arrange shipping. What type of arrangement exists between these parties?

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The type of arrangement between these parties is c.i.f. (cost, insurance, and freight) Whitehorse, as the seller, Finnigan Fishing Rods & Reels Ltd., is responsible for arranging shipping and also for covering the cost of transportation and insurance until the goods are delivered to Whitehorse. This type of arrangement is common in international trade. F.o.b. (free on board) Whitehorse would require DAD to arrange shipping and assume responsibility and costs once the goods are loaded on the carrier, which is not the case in this scenario. P.p.d. (prepaid and add) Whitehorse would mean that Finnigan Fishing Rods & Reels Ltd. pays for shipping, but the cost is added to the invoice and passed on to DAD, which is not specified in the scenario. C.o.d. (cash on delivery) Whitehorse would require cash payment upon delivery, which is not specified in the scenario.

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