The purpose of Incoterms is to provide a set of international rule for the interpretation of the most commonly used trade terms in foreign trade, considering the international trade practice. Incoterms is composes of 13 definitions, CIF is one the most important of them, created by ICC( International Chamber of Commerce) and the last version of it is Incoterms 2000.

My principal question in this research is as follows:

Are the CIF contract and the rights and the duties derived from it in common law system, consistent with the rules of Iranian commercial law and Islamic Jurisprudence? To answer this question, we have two hypotheses:

1-     In common law, the nature of CIF is very well defined and the different aspects of it have been scrutinized, whereas, despite the development of marine trade in Iran, we have no judicial practice.

2-     It seems that the international rules of CIF contract are mostly, consistent with the Iranian law and Islamic Jurisprudence rules.

In  CIF contracts the seller must pay the costs and freight necessary to bring the goods to the named part of destination. The seller also has to procure marine insurance against the buyer`s risk of loss of or damage to the goods during the carriage. He must deliver the shipping documents (bill of lading, insurance policy and invoice) to the buyer within a reasonable time. Then the buyer must pay the price (cost, insurance and freight) under a CIF contract. Passing of risk is when the goods pass the ship`s rail in the port of shipment but the risk of loss of or damage to the goods pass after the time of delivery of the documents.