Question

case analysis ()

2. A French company imported a batch of wheat on CFR basis. The contract provides that the landing quality of the goods should be taken as final. However, when the goods arrived at the destination, the import quarantine bureau detained the goods as they found that the goods contained a great deal of bacterium forbidden to enter the country. Unfortunately, the goods were consumed by a fire while in detainment Q(10%): Who should be responsible for the loss of cargo? Explain.
answer ASAP

Answer 1

Since the trade contract was CFR basis, it means the seller is solely responsible for the transportation of carrier as well as arrangement of documents for import. The insurance and detention charges in this case are borne by the seller and the owner is not liable for any damage or loss during transit or import. The owner only has to accept the final order in final quality.

In the given case, the charges for loss of cargo will be borne by the seller, since the contract was CFR basis.