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The contract of sale
The contract of sale (references)
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Terms of international sales contracts
C.i.f. contracts - general definitions
Original definitions can be found in E. Clemens Horst Co. v. Biddell Bros.  A.C. 18, upholding the judgments of Hamilton J. and the dissenting judgment of Kennedy L.J. in Biddell Bros. v. E. Clemens Horst Co.  1 K.B. 214, 221 and  1 K.B. 934, 956,
but the definition is repeated in Manbre Saccharine v. Corn Products  1 K.B. 198;
Arnhold Karberg & Co. v. Blythe, Green, Jourdian & Co.  1 K.B. 495; Groom v. Barber  1 K.B. 316; The Julia  A.C. 293 (distinguishing c.i.f. from ex-ship); Gatoil International Inc. v. Tradax Petroleum Ltd, The Rio Sun  1 Lloyd's Rep. 350 (useful summary of duties of parties). Also Industria Azucarera Nacional SA (Iansa) v Empresa Exportadora de Azucar (Cubazucar), Queen's Bench Division (Commercial Court) 29 February 1980, upheld by the CA in The Playa Larga and Marble Islands  2 Lloyd's Rep 171.
On contracts peculiar to the oil trade, see C.E.P. Interagra SA v. Select Energy Trading GmbH, The Jambur LMLN 289; The Wise  2 Lloyd's Rep. 451 (C.A.),  1 Lloyd's Rep 96 (1st instance). These also have a bearing on The Julia, above.
F.o.b. - general definitions
Pyrene v. Scindia  2 Q.B. 402 (Devlin J.'s three varieties of f.o.b. contract - an over-simplification?); Pyrene is a category 3 case; for a case the ratio of which is that is category 2 (or at least, not category 3), see The El Amria and El Minia  2 Lloyd's Rep. 28. Wimble Sons v. Rosenburg & Sons  3 K.B. 743 is also cited as classic f.o.b., but there the seller did not apparently undertake to ship.Compare Concordia v. Richco  1 Lloyd's Rep. 475, Carlos Federspiel & Co., S.A. v. Charles Twigg & Co. Ltd.  1 Lloyd's Rep. 240, and N.V. Handel My. J. Smits Import-Export v. English Exporters (London), Ltd  1 Lloyd's Rep 517, all of which are f.o.b. contracts.
Compagnie Commerciale Sucres et Denrees v. C. Czarnikow Ltd., The Naxos  1 W.L.R. 1337;  3 All E.R. 641 (H.L.);  LMCLQ 147 (Treitel); (period of shipment case).
Distinguishing c.i.f and f.o.b.
On distinction between c.i.f. and f.o.b. with additional duties, see Couturier v. Hastie (1856) 5 H.L.C. 673 (described as f.o.b. but probably in reality c.i.f.); The Parchim  A.C. 157 (described as c.i.f. but probably in reality f.o.b.). C.i.f. includes freight and insurance in the price, for f.o.b. it is for buyer's account.
Feltham  JBL 273.
For the general rule:
For f.o.b., delivery was, and hence risk passed on shipment, as in Browne v. Hare (1858) 3 H. & N. 484, 4 H. & N. 822; 157 ER 1067, followed on the risk issue in Inglis v. Stock (1855) 10 App. Cas. 263 (even where property passed later.); but note the effect of J & J Cunningham v. Munro (1922) 13 Lloyd's Rep. 62 and 216.
C.i.f. developed from f.o.b., and hence risk also passes on (or as from) shipment: Tregelles v. Sewell (1862) 7 H. & N. 574, 158 E.R. 600; Groom (C.) Ltd. v. Barber  1 K.B. 316; Manbre Saccharine Co. Ltd. v. Corn Products Co. Ltd.  1 K.B. 198 (c.i.f.);
The Galatia  1 W.L.R. 495,  1 All E.R. 501 (c. & f. - consistent with above position).
Sale of Goods Act 1979, s. 32(3):
Law and Bonar Ltd. v. British American Tobacco Ltd.  2 K.B. 605 (c.i.f.); Wimble v. Rosenburg  3 K.B. 743 (f.o.b.).
Sale of Goods Act 1979, s. 14(2):
Mash & Murrell v. Joseph I. Emmanuel  1 W.L.R. 862 (reversed on other grounds  1 W.L.R. 16), heavily criticised by Sassoon; Atiyah 154; Cordova Land Corpn v. Victor Bros  1 W.L.R. 793. Lambert v. Lewis  A.C. 225; Law Commission Working Paper No. 85 (1983), pp. 19-20.
Note that this section was amended by the Sale and Supply of Goods Act 1994, whose effect is probably to strengthen Mash & Murrell.
Couturier v. Hastie (1856) 5 H.L.C. 673; Sale of Goods Act 1979, s. 6.
Sale of Goods Act 1979, s. 7.
These references on risk were last updated on 10 Jan 98.
Consequence of passing of property.
Colley v. Overseas Exporters  3 K.B. 302; Napier v. Dexters 25 Lloyd's Rep. 109, 26 Lloyd's Rep. 62, 184.
Sale of Goods Act 1979, s.16; Sale of Goods (Amendment) Act 1995.
The Elafi  1 All E.R. 208 (an exceptional case, which Bools argues is wrong, in The Bill of Lading: A Document of Title to Goods, LLP, 1997). The Aramis  1 Lloyd's Rep 213 (property did not pass until discharge, and consequently Bills of Lading Act 1855, s. 1 not triggered).
Law Commission Working Paper No.112, "Right to Goods in Bulk" (1989); The Gosforth (unreported, 20.02.85, noted  L.M.C.L.Q. 4.)
Re Wait  1 Ch. 606; The Aliakmon  A.C. 785 (HL upholds Re Wait).
General position under sale contract.
Sale of Goods Act 1979, ss.17-20 (note especially 17, 19(2), 19(3) and 20). On appropriation see also Carlos Federspiel & Co., S.A. v. Charles Twigg & Co. Ltd.  1 Lloyd's Rep. 240.
The Parchim  A.C. 157; The Kronprincessan Margareta  1 A.C. 486 (early cases);
Ross T. Smyth & Co. Ltd. v. T.D. Bailey Son & Co.  3 All E.R. 60; Also comments in The Future Express  2 Lloyd's Rep. 542; Ginzberg v. Barrow Haemetite Steel Co.  1 Lloyd's Rep. 343 (general position c.i.f., and desirable where payment by documentary credit).
For effect of payment by documentary or stand-by credit,
The Glenroy  A.C. 124; Anonima Petroli Italiana S.p.A. and Neste Oy v. Marlucidez Armadora S.A., The Filiatra Legacy  2 Lloyd's Rep. 337 (another case which Bools argues is wrong), The Delfini  1 Lloyd's Rep. 252.
Retention of right of disposal
The Aliakmon (C.A.)  2 W.L.R. 289, noted  1 L.M.C.L.Q. 1 - this case was upheld in the House of Lords  A.C. 785, but the property points are discussed only in the C.A.
Sale of Goods Act, s.19(2).
The Albazero in the Court of Appeal  A.C. 774; The San Nicholas  1 Lloyd's Rep. 8; Mitsui & Co. Ltd. v. Flota Mercante Grancolumbiana S.A., The Ciudad de Pasto  1 All E.R. 951; The Delfini  1 Lloyd's Rep. 252; The Filiatra Legacy  2 Lloyd's Rep. 337.
This page was last updated on 29 Sep 97.
The duty to send forward shipping documents within a reasonable time of shipment is discussed in Sanders v. Maclean (1883) 11 Q.B.D. 327 (c.i.f.) and Concordia Trading B.V. v. Richco International Ltd.  1 Lloyd's Rep. 475 (f.o.b.).
Clean shipped bill of lading
Yelo v. S.M. Machado & Co. Ltd.  1 Lloyd's Rep. 183 (f.o.b.); Diamond Alkali Export Corpn v. Fl. Bourgeois  3 K.B. 443 (c.i.f.). Both these case suggest that a shipped bill of lading is generally required. The Galatia  1 W.L.R. 495 (clean bill of lading).
Through bill of lading.
Hansson v. Hamel & Horley Ltd.  2 A.C. 36.
Finska Cellulosaforeningen v. Westfield Paper Co. Ltd.  4 All E.R. 473; S.I.A.T. Di Del Ferro v. Tradax Overseas S.A.  2 Lloyd's Rep. 470; cf. Uniform Customs and Practice on Bankers' Commercial Credits, Art. 26(c)(i).
The Julia  A.C. 293; Colin & Shields v. Weddel & Co.  1 All E.R. 1021; Cremer v. General Carriers S.A., The Dona Mari  1 W.L.R. 341 (for description, since the documentary requirements under the sale contract were not there in issue); Krohn v. Thegra  1 Lloyd's Rep. 146 (common law definition). See also the definition of a ship's delivery order in s.1(3) of the Carriage of Goods by Sea Act 1992.
Nippon Yusen Kaisha v. Ramjiban Serowgee  A.C. 429; Kum v. Wah Tat Bank  1 Lloyd's Rep. 439.
Borthwick v. Bank of New Zealand (1900) 6 Com. Cas. 1; Groom (C.) Ltd. v. Barber  1 K.B. 316; Manbre Saccharine Co. Ltd. v. Corn Products Co. Ltd.  1 K.B. 198; Wilson, Holgate & Co. Ltd. v. Belgian Grain and Produce Ltd.  2 K.B. 1; Diamond Alkali Export Corp. v. Fl. Bourgeois  3 K.B. 443; Donald H. Scott & Co. Ltd. v. Barclays Bank Ltd.  2 K.B. 1.
This page was last updated on 29 Sep 97.
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