(810 ILCS 5/2-321) (from Ch. 26, par. 2-321)
Sec. 2-321.
C.I.F.
or C. & F.: "net landed weights"; "payment on
arrival"; warranty of condition on arrival.
Under a contract containing a term C.I.F. or C. & F.
(1) Where the price is based on or is to be adjusted according to
"net landed weights", "delivered weights", "out turn" quantity or
quality or the like, unless otherwise agreed the seller must reasonably
estimate the price. The payment due on tender of the documents called
for by the contract is the amount so estimated, but after final
adjustment of the price a settlement must be made with commercial
promptness.
(2) An agreement described in subsection (1) or any warranty of
quality or condition of the goods on arrival places upon the seller the
risk of ordinary deterioration, shrinkage and the like in transportation
but has no effect on the place or time of identification to the contract
for sale or delivery or on the passing of the risk of loss.
(3) Unless otherwise agreed where the contract provides for payment
on or after arrival of the goods the seller must before payment allow
such preliminary inspection as is feasible; but if the goods are lost
delivery of the documents and payment are due when the goods should have
arrived.
(Source: Laws 1961, p. 2101.)
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