808                               LAWS OF MARYLAND                        [CH. 538

documents and the seller may not tender nor the buyer demand de-
livery of the goods in substitution for the documents.

2—320. C. I. F. and C. & F. Terms.

(1)   The term C. I. F. means that the price includes in a lump sum
the cost of the goods and the insurance and freight to the named
destination. The term C. & F. or C. F. means that the price so in-
cludes cost and freight to the named destination.

(2)   Unless otherwise agreed and even though used only in con-
nection with the stated price and destination, the term C. I. F. destin-
ation or its equivalent requires the seller at his own expense and
risk to

(a)  put the goods into the possession of a carrier at the port for
shipment and obtain a negotiable bill or bills of lading covering the
entire transportation to the named destination; and

(b)  load the goods and obtain a receipt from the carrier (which
may be contained in the bill of lading) showing that the freight has
been paid or provided for; and

(c)  obtain a policy or certificate of insurance, including any war
risk insurance, of a kind and on terms then current at the port of
shipment in the usual amount, in the currency of the contract, shown
to cover the same goods covered by the bill of lading and providing
for payment of loss to the order of the buyer or for the account of
whom, it may concern; but the seller may add to the price the amount
of the premium for any such war risk insurance; and

(d)  prepare an invoice of the goods and procure any other docu-
ments required to effect shipment or to comply with the contract; and

(e)  forward and tender with commercial promptness all the docu-
ments in due form and with any indorsement necessary to perfect
the buyer's rights.

(3)   Unless otherwise agreed the term C. & F. or its equivalent
has the same effect and imposes upon the seller the same obligations
and risks as a C. I. F. term except the obligation as to insurance.

(4) Under the term C. I. F. or C. & F. unless otherwise agreed the
buyer must make payment against tender of the required documents
and the seller may not tender nor the buyer demand delivery of the
goods in substitution for the documents.

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 sub-section (1) or any warranty
of quality or condition of the goods on arrival places upon the seller