Monday, January 16, 2012

INCOTERMS are not law”

INCOTERMS are not law”Whatever is written and agreed to in the CONTRACT shall be the true terms.

Incoterms do not cover title transfer; they deal with risk of loss.The contract is legally binding & would override the Inco- term rule.

Title transfer is quite a separate issue from transfer of risk. It is possible to remain "on risk" at a given point in the journey without having title to the goods(and vice versa)


The Incoterms rules intentionally remain silent on the matter of title, because they are rules,not laws, and title to goods is a legal concept - there are all sorts of subtle differences between the treatment of title in different legal systems.

So the matter of title needs to be addressed in the commercial agreement, which should Also specify the applicable law.

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