Distinguish between the following: FOB contracts and CIF Contracts

FOB (Free on Board) Contract: Under an FOB contract, it is the duty of the seller to put the goods on board a ship at his own expenses. The property in goods passes to the buyer only after the goods have been put on board the ship and they are at buyer's risk as soon as they are put on board the ship, usually named by the buyer. The seller must notify the buyer immediately that the goods have been delivered on board so that the buyer may insure them. If he fails to do so the goods shall be deemed to be at seller's risk during such sea transit. CIF or CFI (Cost, Insurance, Freight) Contract: A CIF contract is a contract for the sale of insured goods to be implemented by transfer of proper documents. In such types of contracts, the seller not only bears all the expenses of putting the goods on board the ship as in an F.O.B. contract but also to bear the freight and insurance charges. Under CIF contract, the seller assumes the costs and risks associated with transport until delivery, which is when the buyer assumes responsibility.