In a C.I.F. contract, that is, where the contract is for the sale of goode at a price to cover cost, insurance and freight and ex-ship, the seller bas first to ship at the pon of shipment goods of the description contained In the contract. He must then procure the ahipping documeats as contem· B plated by the contract upon the terms current covering the whole transit of the goods. He must arrange fof insurance, must make out an invoice wh:ch is a written account of the particulars of goods delivered and their price and charges etc. This invoice 'is made out debiting the buyer with the agreed price and giving him credit for the amount Of freight which he will pay the shipowners on actual delivery. The shipper should tender the shipping documents to enable the buyer to deal with the goods in the usual way of business. He is also required to tender such other docuc ments as are specified in the contract and if tl1e contract is si'.ent, it is sufficient if the seller tenders the b:U of lading. insurance. policy arid invoice. ·Under such r. contract prima fade, the property in the good. passes once the documents are tendered by the seller to the buyer or bi6 agent as required under the contract. But when the sel'er retai"I control over the goods by either obtaining a bill of lading in his own 1111/M or to his order, the property in the goods does not pass to the buyer until be D endorses the bill to the buyer and det:vers the documents to him. If however the .seller's dealing with the b;tl of lading is only to secure the contract price, not with the intention of withdrawing the good from the contract, and he does nothing inco'5istent with an intention to pass the property, the property may pass either forthwith subject to the seller's lien or conditional on pe•formance by the buyer of his part of the contract. Eve~ though the property in the goods may ·pass to the buyer when tho documents are handed over, the buyer may yet retain the right to examine E and repudiate the goods. But this right generally,. which a buyer has in a C.l.F. Contract, does not by itself indicate that the property. in the goods has not passed to him. The asce·tainment of the obligetions under the contract will deterrni"e to what extent the transfer of property is subject to a condit'.on, or, if the property passes cond.tio"ally whether the ownership left in the se'lcr is the reversionary interest in the property in the event Of the conditio~• subsequent operating to restore it to him. In any case where the oerforma"ce of some conditio" is imoosed upon F the buyer but is not made a cond;tion of the tra•sfer of the property, the property once passed ;, not re-v•ste1 in the seller by the buyer's subse· quent default. [149C-D, E-H; tSOA-C; 1520-0)
