Home > West's Encyclopedia of American Law > C.F.&I.

An abbreviation for cost, freight, and insurance that is used in a sales contract to indicate that the purchase price quoted for the goods by the seller includes the expense incurred by the seller for shipment of such goods and for insurance of the goods against loss or destruction until their arrival at the destination named by the buyer.

The abbreviation C.F.&I. is synonymous with the abbreviation C.I.F. commonly found in contracts for foreign shipments. A seller who has entered a sales contract with a C.F.&I. provision agrees to accept the expense of placing the goods into the custody of a carrier for shipment from their port of origin to their designated location and to obtain a negotiable bill of lading, which will be endorsed by the buyer upon receipt of payment for the goods. The seller has the responsibility of loading the cargo and obtaining a receipt from the carrier, which might be incorporated into the bill of lading...