Contracts - Negotiating and Drafting
Our law firm drafts and negotiates contracts to fit our clients needs, whether it is the sale of goods, lease, employment, agency, or contractor.
INCOTERMS are official rules for interpretation of trade terms established by the International Chamber of Commerce (ICC). They were first developed in 1936 in order to establish worldwide international rules for commonly used trade terms and eliminate uncertainty of interpretation of rules in different countries. Since their creation, INCOTERMS have been amended six times, most recently in 2000. The amendments, especially INCOTERMS 2000, help bring the terms into line with the current international trade practices. Essentially, INCOTERMS helps facilitate international trade and reduce disputes between sellers and buyers. INCOTERMS have a limited scope. They only deal with relations between buyers and sellers under contract of the sale. INCOTERMS do not apply to the contract of carriage or provide for all duties that parties may wish to include in a specific contract of sale.
INCOTERMS, moreover, only apply at the discretion of the parties. They only come into play when both sides agree to deal under a specific INCOTERM. The terms and conditions for each different INCOTERM are specific and focus on the seller’s delivery obligation to the buyer. Each term designates who is responsible for the costs and liabilities of the transaction and shipment.
There are thirteen different INCOTERMS divided into four Groups (E, F, C, and D). Group E places minimal obligation on the seller, requiring the seller only to place the goods at the buyer’s disposal. Group F terms require the seller to deliver the goods for carriage as the buyer instructs. Group C terms require the seller to both contract and pay for carriage. Finally, Group D terms place the maximum burden on the seller.