The Principles and Importance of Free on Board (F.O.B.) and Cost Insurance Freight (C.I.F.) Contracts in the Contract of International Sales of Goods

Abstract

In international sale contracts, goods sold which are to be shipped to their various destinations give rise to a host of difficult questions such as problems raised by export and import licenses, and of the method of payment by bankers' commercial credits, trade prohibitions and restrictions, etc. A contract for selling goods is mainly requires a shipment by sea of the goods. Cost insurance freight (C.I.F.) contract, Free on Board (F.O.B.) contract, ex-works and ex-ship contract are some of the known trade terms in international sale of goods. Comprehensive discussions of the principles of international sales of goods relating to commercial activities or transactions in Nigeria and African continent is presented in this study.