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Simple English definitions for legal terms
c.a.f.
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A quick definition of c.a.f.:
Term: C.A.F.
Definition: C.A.F. stands for cost, assurance, and freight. It is a term used in international trade to describe the total cost of goods, including insurance and shipping fees. It is similar to the term C.I.F., which stands for cost, insurance, and freight. In French contracts, C.A.F. is the equivalent of C.I.F., with the "A" standing for "assurance," which means insurance.
Source: William D. Hawkland, Uniform Commercial Code Series § 2-320 (1984).
A more thorough explanation:
Definition: C.A.F. stands for Cost, Assurance, and Freight. It is a term used in international trade to indicate the total cost of goods including insurance and shipping fees.
For example, if a company in the United States wants to import goods from France, they may agree to pay a C.A.F. price. This means that the price they pay includes the cost of the goods, the cost of insuring the goods during transit, and the cost of shipping the goods to the United States.
Another example could be a company in China agreeing to sell goods to a company in Australia for a C.A.F. price. This means that the price the Australian company pays includes the cost of the goods, the cost of insuring the goods during transit, and the cost of shipping the goods to Australia.
The C.A.F. term is often used interchangeably with C.I.F. (Cost, Insurance, and Freight), which has the same meaning. In French contracts, C.A.F. is used instead of C.I.F., but the two terms are equivalent.