Chapter 20 Self-test questions

. Which of the following statements is correct?

The use of trade terms like Cif means that buyers and sellers do not have to concern themselves with negotiating any other terms of the contract for the sale of the goods

In English law, using a trade term like Cif or Fob means that Incoterms will apply.

The only trade terms recognised by English law are Fob and Cif.

Some trade terms like Cif and Fob literally only apply to transactions where some of the goods are to be carried by sea or inland waterway, but others can apply where there is no transportation involved at all, like Exw.

. Which of the following statements are incorrect? Please select all that apply.

The term 'Fob' is only used where the goods are to be transported by sea or inland waterway

If the parties agree to sell goods 'Fob UK' the court may declare the contract void for uncertainty

If the parties use the term 'Fob' this conclusively establishes their duties.

If the parties describe their contract as 'Fob' but the contract requires the seller to pay for transport of the goods to the buyer the court will construe the term 'Fob' as meaningless

. Which of the following statements is incorrect?

In a Fob contract the name of the place after the three letters indicates the port of discharge.

In strict Fob the buyer will nominate the ship.

Once he has nominated a ship the Fob buyer may not be able to change his mind and, if he can, he does so at the risk of incurring additional costs.

Prima facie the buyer's duty to pay in a Fob contract arises when the goods pass over the ship's rail.

. A document which requires a statement from an expert that goods match the contract specification is called a certificate of ___.

. Which of the following statements is correct?

Property in goods sold Fob passes prima facie when the goods pass over the ship's rail.

Risk in goods sold Fob will pass when the buyer has paid.

Fob does not lend itself to documentary sales.

If a bill of lading is issued to the seller in a Fob contract, he must always immediately give it to the buyer.

. Which of the following statements is correct?

If a Fob seller has agreed to additional duties, the point at which delivery takes place will potentially depend on when the buyer obtains control over the goods

If a bill of lading is made out in a Fob seller's name, property in the goods will normally pass with the bill of lading.

Risk in the goods will always pass when the goods pass over the ship's rail.

Whatever the parties agree the seller has no duty to meet any costs after the goods have been loaded.

. In Cif contracts the letters stand for 'Cost ___ freight.'

. Which of the following statements are incorrect? Please select all that apply.

A Cif seller is under a duty to enter into a contract of marine cargo insurance.

A Cif seller is under a duty to ship goods conforming to the contractual description

A Cif contract is a contract for the sale of documents not goods.

A Cif seller can tender documents relating to goods which no longer exist and is entitled to be paid.

. A Cif seller owes a duty to tender documents which ___ strictly with the terms of the contract

. Which of the following statements is incorrect?

A Cif seller has two sets of duties; one in relation to the documents, the other in relation to the goods.

A buyer's acceptance of documents in a Cif contract does not mean that he has to accept the goods and vice versa.

A Cif seller owes a duty to tender accurate documents and breaks a duty to the seller even where he had no means of discovering the inaccuracy.

A Cif seller must pay substantial damages to a buyer if he tenders inaccurate documents

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