A buyer and seller entered into a contract for the sale of widgets, “CIF Omaha.” A further provision stated that delivery was to be at a “factory in Omaha, Tulsa, or Kansas City, to be designated by the buyer.” The widgets were lost in transit.

The buyer refused to pay on the presentation of the documents, arguing that the additional provision had converted the shipment contract to a destination contract. What type of contract was this and why? What advice would you give someone regarding the use of trade terms?