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.pdfН е в ы п о л н е н и е ( 2 9 ) обязательств
В соглашении может предусматриваться, что оно прекращается при наступлении определенных обстоятельств. Это может произойти как по вине одной из сторон, так и в случае банкротства, реорганизации и т.д. В данном разделе необходимо определить, что составляет невыполнение обязательств и какие процедуры должны последовать для того, чтобы прекратить контракт за неисполнением обязательств одной из сторон.
П р е к р а щ е н и е ( 3 0 ) и истечение срока
В случаях, когда контракт заключается на определенный период, он прекращается автоматически по истечении срока.
П е р е д а ч а ( 3 1 ) прав третьим лицам |
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Этот раздел определяет д о п у с т и м о с т ь ( 3 |
2 ) передачи сторонами своих прав и |
обязанностей по контракту третьим лицам. |
|
И з м е н е н и я ( 3 3 ) и д о п о л н е н и я ( 3 4 ) |
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Должна быть предусмотрена возможность внесения изменений и дополнений в контракт.
П р а в а и н т е л л е к т у а л ь н о й с о б с т в е н н о с т и
Когда оговаривается использование торговых марок, патентов или предоставление их по лицензии третьим лицам, в контракте должны быть затронуты соответствующие аспекты интеллектуальной собственности.
К о н ф и д е н ц и а л ь н о с т ь и н е к о н к у р е н т н о с т ь
Стороны обязуются не разглашать конфиденциальную информацию, ставшую им известной в период их деятельности и не конкурировать.
Ш т р а ф ы ( 3 5 ) и заранее оцененные убытки
В большинстве систем общего права штрафы являются незаконными и поэтому необходимо выяснить, будет ли такое положение осуществимо в действующей правовой системе.
З а д е р ж к а ( 3 6 ), невозможность о т к а з а ( 3 7 )
Для правовых систем, где частичное использование прав приводит к отказу от всей их с о в о к у п н о с т и ( 3 8 ) , данная статья контракта является очень полезной.
И з в е щ е н и я ( 3 9 )
Принято определять, кому и куда должна направляться официальная корреспонденция.
Р е к л а м а
Сторонам необходимо договориться о том, что в отношении данного соглашения может, а что не может быть п р е д а н о п у б л и ч н о й о г л а с к е ( 4 0 ) .
Я з ы к
Так как перевод юридических понятий может быть неточным или привести к путанице, необходимо, чтобы контракт п р е д у с м а т р и в а л ( 4 1 ), какому языку отдается предпочтение.
Т р е б у е м о е д е й с т в и е
Необходимо оговорить и записать в соответствующую статью контракта типы действий, существенные для успеха контракта, а также последствия за их н е с о б л ю д е н и е ( 4 2 ) для каждой из договаривающихся сторон.
Выбор правовой н о р м ы ( 4 3 ) и ю р и с д и к ц и и ( 4 4 ) (территориальной подсудности)
В случае споров, во многих международных коммерческих контрактах стороны предпочитают арбитраж.
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1)сontent, subject (matter), substance
2)definition of the parties, description
3)developer, drafter, designer, elaborator
4)part, party, side
5)position, location, site
6)improper, inappropriate
7)definition, wording, formulation
8)offer, proposal, tender
9)adoption, acceptance, enactment
10)liability, responsibility, obligation, commitment, bonds
11)coordinate, agree
12)transport, traffic, carriage, conveyance, haulage
13)packing, packaging, wrapping
14)terms and conditions, facilities
15)compensation, reimbursement, indemnification
16)restoration, rehabilitation, restitution
17)security, safety, protection
18)surroundings, environment
19)guaranty, surety, warranty, indemnity
20)delivery, supply, procurement
21)acceptance, inspection
22)insurance, underwriting, annuity, hedging
23)pass on, shift to
24)premium, bonus, remuneration
25)fine, penalty, agreed and liquidated damages
26)late, overdue
27)force majeure (major), act of God
28)difficulty, embarrassment, hardship
29)failure, default, non-fulfilment, non-execution
30)stoppage, cessation, termination, suspension
31)transfer, transmission
32)assumption, admittance
33)alteration, modification, change
34)addition, addendum (addenda)
35)fine, penalty, forfeit
36)delay, detention
37)refusal, withdrawing, repudiation
38)complex, set, aggregate, totality
39)notice, notification, advice
40)give publicity, make known, make public
41)stipulate, provide
42)noncompliance with, nonobservance, infringement
43)norms of law, provisions of law
44)governing law, territorial jurisdiction
2. Read the definition of the parties and the Subject Clause from the contract of sale and do the comprehension task below it.
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Contract No. ___
________200_, Moscow
____________________, hereinafter referred to as the “Buyer”, represented by ______
______________, on the one part, and __________________, hereinafter referred to
as the “Seller”, represented by ___________________, on the other part, have concluded the present Contract on the following:
Subject of the Contract
The Seller has sold and the Buyer has bought on the basis of CIP _____________ as per INCOTERMS 2000 the Equipment indicated in Attachment No. 1. The scope of work to be performed by the Seller consists of supply of the equipment and fulfilment of the service, specified in Attachment No. 1.
Comprehension
1)What are the Seller’s obligations?
2)Where are the terms of delivery and the Seller’ scope of work specified?
3)Explain to a non-expert how to make up the beginning of a standard sales contract.
RENDERING
Read the following extracts and render them in English.
1.Международные торговые операции – это комплекс основных и вспомогательных видов коммерческой деятельности, т.е. выбор технических приемов, последовательное применение которых обеспечивает реализацию договора купли-продажи. Смысл международных торговых операций заключается в том, чтобы организовывать, направлять, регулировать различные виды деятельности людей, осуществляющих процесс международного обмена товарами и услугами.
Международные торговые операции, связанные с обменом продукцией, работами или услугами, состоят из множества элементов: маркетинговое исследование внешнего рынка, поиск и выбор контрагента, установление контакта с иностранным партнером, анализ и проработка конкурентных материалов, расчет экспортно-импортных цен, разработка условий платежа и поставки, подготовка проекта контракта, проведение переговоров и согласование проекта контракта, подписание контракта, исполнение контрактных обязательств и контроль над их исполнением.
Правовой формой, опосредующей международные торговые операции, является внешнеторговая сделка, обязательным условием которой является заключение ее с иностранным контрагентом.
2.Экспортно-импортные операции – коммерческая деятельность, связанная с международной куплей-продажей товаров и услуг.
Реэкспорт – коммерческая деятельность, предусматривающая вывоз за границу ранее ввезенного товара, не подвергавшегося в реэкспортирующей стране переработке.
Реимпорт – коммерческая деятельность, предусматривающая ввоз из-за границы ранее вывезенного товара, не подвергавшегося там переработке.
3.Особенности международных торговых операций в современных условиях характеризуются следующими важнейшими чертами:
•изменение характера продукции, поступающей в международный товарооборот, обновление изделий и расширение ассортимента;
•рост масштабов сделок;
•расширение практики поставок «под ключ», когда продавец берет на себя обязательство на весь комплекс работ по строительству предприятия – от разработки проектной документации до ввода в эксплуатацию предприятия;
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•осуществление крупномасштабных сделок совместно компаниями разных стран путем создания консорциумов;
•ориентация на конкретного потребителя.
4. Виды международных торговых операций:
1)Основные – осуществляемые на возмездной основе между участниками этих операций: обмен товарами в материальной форме; обмен научно-техническими знаниями в форме торговли патентами, лицензиями, ноу-хау; обмен техническими услугами (консультативный и строительный инжиниринг); арендные операции; операции по международному туризму; предоставление консультационных услуг.
2)Вспомогательные (обеспечивающие) – связанные с продвижением товара: международные перевозки грузов; транспортно-экспедиторские операции; операции по страхованию
ихранению грузов; операции по ведению международных расчетов.
5. Принято различать несколько видов встречной торговли:
Бартерные сделки представляют собой безвалютный обмен товарами, которые должны быть оценены партнерами с целью обеспечения эквивалентных взаимных поставок. Оценка товаров необходима также для таможенного учета и определения страховых сумм. Любой бартерной сделке предшествуют предварительные переговоры, связанные с выяснением заинтересованности сторон в безвалютном обмене товаров. Бартерная сделка оформляется между партнерами соответствующим контрактом (в основном аналогичным контракту куплипродажи), однако в статье «Условия взаимных расчетов» записывается положение о том, что счета за поставленный товар выписываются с отметкой «без оплаты», но с приложением товарораспорядительных документов.
6.Контрзакупки. Экспортеры в борьбе с конкурентами и в связи с условиями торговли на рынке партнера вынуждены принимать на себя встречные обязательства по закупкам товаров импортера. Эти обязательства фиксируются в контрактах между ними либо в виде перечня встречной поставки, либо в конкретной сумме встречных обязательств. Если при бартерной сделке, как правило, предполагается только два участника, то при контрзакупке их может быть три и даже четыре, по два с каждой стороны. В отличие от бартера, при контрзакупках допускается наличие неконвертируемого сальдо, которое зачисляется на счет кредитора в банке страны должника. С этого счета кредитор может осуществлять платежи, но в основном только
встране должника.
7.Компенсационные соглашения занимают в общем объеме встречной торговли около 9 % и являются одним из направлений экономического и технического сотрудничества, связанного со строительством промышленного предприятия или объекта по добыче полезных ископаемых на условиях безвалютного взаиморасчета между партнерами. Это строительство предусматривает выполнение поставщиком/подрядчиком проектных работ, поставку технологического оборудования, производство строительно-монтажных работ, передачу сопутствующих лицензий и «ноу-хау», а также предоставление кредита. В качестве расчета выступает продукция построенного предприятия, которое является собственностью заказчика. Основные экономические признаки компенсационных соглашений:
•взаимовыгодный характер соглашений,
•крупномасштабный программы и долгосрочный характер сотрудничества,
•комплексное сотрудничество: «Наука и техника – производство – обмен»,
•товарное возмещение кредитов на основе безналичных расчетов.
После полной компенсации предоставленного кредита поставка продукции компенсационным предприятием (в том числе и для бывшего подрядчика) осуществляется по ценам свободного рынка. Конечная цель и задача компенсационных соглашений – устойчивое производство качественного продукта, пользующегося постоянным спросом на международном рынке.
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Unit 4
TERMS OF DELIVERY
DISCUSSION
How much do you know about terms of delivery? Discuss the following questions with your partner.
•What does the term “multimodal transport” imply?
•Why special International Commercial Terms are necessary for transporting cargoes between countries?
•Do counterparties bear equal responsibilities under different Incoterms? Give examples.
READING
PURPOSE AND SCOPE OF INCOTERMS
Key concepts and terms
Match up the terms on the left with their definitions on the right.
1) Incoterms |
a) a tax on imports |
2) factor of production |
b) combination of different modes of transport |
3) customs duty |
c) the price paid for an insurance policy |
4) loss |
d) any resource used in the production of goods or services |
5) multimodal transport |
e) physical objects that can be touched |
6) tangibles |
f) things that cannot be touched like patents, trade marks, etc. |
7) intangibles |
g) the result of a business operation where expenditures exceed |
|
receipts |
8) premium |
h) a glossary of terms used in international commerce and trade |
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published by the International Chamber of Commerce |
Text 4.1. Read the text and prove that transportation is an important stage in accomplishing a contract of sale.
International Transportation
International transportation is transportation of cargoes and passengers through frontiers of countries. Nowadays, it is a very important area of activity serving international trade. It may be considered as a blood system of all commercial activities. The share of the international transportation in total services is rather high now. The level of transport services influences the level of the openness and internationalisation of economies. The higher the level of transport services is, the deeper the international economic relations and the higher the level of globalisation are. Thus, transport systems promote mobility of factors of production. Transportation is an important stage in realizing contracts for international trade. Concluding a contract, the counterparties discuss transportation of cargoes. This clause of the contract stipulates the price and terms of delivery including the responsibility for the delivery of the cargo, the party which pays for it and up to what points the cargo is to be delivered. It is always a dilemma between the seller and the buyer on who, where and when bears the responsibility for goods being carried, pays the freight and customs duties, services and insurance and on which stages the risks are transferred from the seller to the buyer. While the terms of sale in international business often sound similar to those commonly used in domestic contracts, they often have different meanings. Confusion over these terms can result in a lost sale or a financial loss on a sale. Thus, it is essential to understand what terms are agreed upon before finalising a contract.
By the 20s of the XX century, commercial traders had developed a set of trade terms to describe their rights and liabilities with respect to the sale and transport of goods. These trade terms consisted of short abbreviations for lengthy contract provisions. Unfortunately, there was no uniform interpretation of them in all countries, and therefore misunderstandings often arose in cross-border transactions. To improve this aspect of international trade, the International Chamber of Commerce (ICC) in Paris developed INCOTERMS (INnternational COmmercial TERMS), a set of uniform rules for the interpretation of international commercial terms defining the costs, risks, and obligations of buyers and sellers in international transactions.
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Text 4.2. Read the text and briefly outline the historical background of Incoterms.
Development of Incoterms
Purpose of Incoterms
The purpose of Incoterms is to provide a set of international rules for the interpretation of the most commonly used terms in foreign trade. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree. Frequently, parties to a contract are unaware of the different trading practices in their respective countries. This can give rise to misunderstandings, disputes and litigation with all the waste of time and money that these entail. In order to remedy these problems and to avoid misunderstanding between importers and exporters the Incoterms were first published in 1936 of the XX century. These rules were known as “Incoterms 1936”. These rules have been periodically revised. Amendments and additions were later made in 1953, 1967, 1976, 1980, 1990 and presently in 2000.
Why Revisions of Incoterms?
The main reason for successive revisions of Incoterms has been the need to adapt them to contemporary commercial activities and to bring the rules in line with current international trade practices, that is to account for changing modes of transport and document delivery. Thus, in the 1980 revision, the term Free Carrier (now FCA) was introduced in order to deal with the frequent case where the reception point in maritime trade was no longer the traditional FOB-point (passing of the ship’s rail) but rather a point on land, prior to loading on board a vessel, where the goods were stowed into a container for subsequent transport by sea or by different means of transport in combination (so-called combined or multimodal transport). Further, in the 1990 revision of Incoterms, the clauses dealing with the seller’s obligation to provide proof of delivery permitted a replacement of paper documentation by EDI-messages provided the parties had agreed to communicate electronically. Needless to say, efforts are constantly made to facilitate the practical implementation of Incoterms.
Incoterms 2000
During the process of revision, which has taken about two years, ICC did its best to invite views and responses to successive drafts from a wide ranging spectrum of world traders, represented as various sectors in national committees through which ICC operates. Indeed, it was gratifying to see that the revision process attracted far more reaction from users around the world than any of the previous revisions of Incoterms. The result of this dialogue was Incoterms 2000, a version which, when compared with Incoterms 1990, may appear to suffer few changes. It is clear, however, that Incoterms now enjoy world wide recognition and ICC has therefore decided to consolidate upon that recognition and avoid change for its own sake. On the other hand, serious efforts were made to ensure that the wording used in Incoterms 2000 clearly and accurately reflects trade practice. Moreover, substantive changes were made in two areas:
•the customs clearance and payment of duty obligations under FAS and DEQ; and
•the loading and unloading obligations under FCA.
All changes, whether substantive or formal, were made on the basis of thorough research among users of Incoterms and particular regard was given to queries received since 1990 by the Panel of Incoterms Experts, set up as an additional service to the users of Incoterms.
The Scope of Incoterms
It should be stressed that the scope of Incoterms is limited to matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold (in the sense of “tangibles”, not including “intangibles” such as computer software). It appears that two particular misconceptions about Incoterms are very common. First, Incoterms are frequently misunderstood as applying to the contract of carriage rather than to the contract of sale. Second, they are sometimes wrongly assumed to provide for all the duties which parties may wish to include in a contract of sale. As has always been underlined by ICC, Incoterms deal only with the relations between sellers and buyers under the contract of sale, and, moreover, only do so in some very distinct respects. While it is essential for exporters and importers to consider the very practical relationship between the various contracts needed to perform an international sales transaction – where not only the contract of sale is required, but also contracts of carriage, insurance and financing – Incoterms relate to only one of these contracts, namely, the contract of sale.
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Implications for Other Contracts
Nevertheless, the parties’ agreement to use a particular Incoterm would necessarily have implications for other contracts. Let us mention a few examples.
Sellers having agreed to a CFRor CIF-contract cannot perform such a contract by any other mode of transport than carriage by sea, since under these terms they must present a bill of lading to the buyer, which is simply not possible if other modes of transport are used. Furthermore, the document required under a documentary credit would necessarily depend upon the means of transport intended to be used.
Second, lncoterms deal with a number of identified obligations imposed on the parties such as the seller’s obligation to place the goods at the disposal of the buyer or hand them over for carriage or deliver them at destination – and with the distribution of risk between the parties in these cases.
Finally, they deal with the obligations to clear the goods for export and import, packing of the goods, the buyer’s liability to take delivery as well as the obligation to provide proof that the respective obligations have been duly fulfilled.
Incoterms have always been primarily intended for use where goods are sold for delivery across national boundaries: hence, international commercial terms. However, Incoterms are in practice at times also incorporated into contracts for the sale of goods within purely domestic markets. Where Incoterms are so used, any stipulation of articles dealing with export and import do, of course, become redundant.
R e m e m b e r !
Although Incoterms are extremely important for the implementation of the contract of sale, a great number of problems which may occur in such a contract are not dealt with at all, like transfer of ownership and other property rights, breaches of contract and the consequences following from such breaches as well as exemptions from liability in certain situations. Generally, Incoterms do not deal with the consequences of breach of contract and any exemptions from liability owing to various impediments. These questions must be resolved by other stipulations in the contract of sale and the applicable law.
Incorporation of Incoterms into the Contract of Sale
In view of the changes made to Incoterms from time to time, it is important to ensure that where the parties intend to incorporate Incoterms into their contract of sale, an express reference is always made to the current version of Incoterms. This may easily be overlooked when, for example, a reference has been made to an earlier version in standard contract forms or in order forms used by merchants. A failure to refer to the current version may then result in disputes as to whether the parties intended to incorporate that version or an earlier version as a part of their contract. Merchants wishing to use Incoterms 2000 should therefore clearly specify that their contract is governed by Incoterms 2000.
R e m e m b e r !
Incoterms Do …
Incoterms 2000 may be included in a sales contract if the parties desire to
•complete a sale of goods;
•indicate each contracting party’s costs, risks and obligations with regard to delivery of the good; and
•establish basic terms of transport and delivery in a short format.
Incoterms Do Not …
Incoterms 2000 are not sufficient on their own to express the full intent of the parties. They will not
•apply to contracts for services.
•define contractual rights and obligations other than for delivery.
•specify all details of the transfer, transport, and delivery of the goods.
•determine how title to the goods will be transferred.
•protect a party from his/her own risk of loss.
•cover the goods before or after delivery.
•define the remedies for breach of contract.
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Concept check
1.Read each statement and decide if it is true or false. Explain your point of view.
1)The lower the level of transportation service, the lower the level of globalisation of the world economic system.
2)When concluding a contract, there is always a perplexing situation which makes sellers and buyers solve a lot of disputable questions concerning the international economic relations.
3)The terms of delivery under both the domestic and foreign trade are quite the same.
4)Incoterms 1920 proved to be unsound in solving cross-border problems.
2.Why did commercial traders have to make out a set of terms concerning their rights and obligations?
3.What is the purpose of Incoterms?
4.What are the reasons for periodic revisions of Incoterms? Give examples.
5.Which version of Incoterms is now enjoying world wide recognition and what important changes have been made in it?
6.Explain two main misconceptions about Incoterms.
7.Choose the correct variant.
1)Incoterms deal with the sale of both tangibles and intangibles.
2)Incoterms are more applied to the contract of carriage.
3)Incoterms relate only to the contract of sale.
4)Incoterms include all the liabilities of counterparties.
8.Read each statement and decide if it is true or false. Explain your point of view.
1)The underlying idea of Incoterms is to refrain from misinterpretations of commonly used international trade terms.
2)Incoterms are applicable not only to the basic contract of sale but also to the auxiliary contracts such as the contract of carriage.
3)Incoterms stipulate all the obligations of the contracting parties.
4)An Incoterm agreed upon by the parties inevitably influences the corresponding auxiliary contracts.
9.Explain in what way Incoterms have implications for other contracts. Give examples.
10.Why should traders make a reference to the corresponding version (earlier or current version) of Incoterms?
11. Choose the correct statements. Incoterms 2000
a)express full intentions of the counterparties;
b)are applicable to both contracts of sale and contracts for services;
c)shortly specify the terms of delivery;
d)protect the goods before and after delivery; and
e)define counterparties’ obligations, risks and costs.
LANGUAGE STUDY
1. Match the words on the left with the definitions on the right.
1) avoid |
a) any evidence that establishes or helps to establish the truth, validity, |
|
quality of something |
2) give rise to |
b) the predetermined end of a journey or voyage |
3) entail |
c) the field within which an activity takes place |
4) amendment |
d) being appropriate or relevant; able to be applied; fitting |
5) dilemma |
e) a shortened form or contracted form of a word or phrase used |
|
in place of the whole |
6) provide for |
f) prevent from happening |
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7) applicable |
g) a difficult perplexing situation |
8) at the disposal of |
h) having the power or opportunity to make use of something |
9) destination |
i) bring about or impose by necessity; have as a necessary |
|
consequence |
10) proof |
j) cause the development of |
11) scope |
k) an addition, alteration, or improvement to a motion, document, etc. |
12) abbreviation |
l) (in statutes, documents) determine (what is to happen in certain |
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contingencies), esp. by including a proviso condition |
2. Match the words on the left with their synonyms on the right.
1) with respect to |
a) cure |
2) implication |
b) meaning, significance |
3) incorporation |
c) lawsuit |
4) impediment |
d) boundary, border |
5) frontier |
e) objective, aim, goal |
6) intent |
f) drawing in or involvement; participation |
7) purpose |
g) defend |
8) protect |
h) hindrance or obstruction |
9) remedy |
i) with regard to |
10) litigation |
j) inclusion |
3. Word building: complete the following chart.
Verb |
Noun |
Person |
Adjective |
|
|
|
|
transport |
transportation |
transporter |
transportable |
|
|
reviser |
|
intend |
|
|
|
protect |
|
|
|
|
impediment |
|
|
|
|
interpreter |
|
|
implication |
|
|
|
|
|
avoidable |
prove |
|
|
|
|
implementation |
|
|
|
|
|
applicable |
|
|
promoter |
|
|
incorporation |
|
|
|
amendment |
|
|
improve |
|
|
|
|
litigation |
|
|
4.Fill in each blank with the correct form of one of the vocabulary words from 1, 2 and 3.
1)The … trade holds more and more significance in establishing good economic relations between regions.
2)The … of Incoterms is to … misunderstanding between counterparties.
3)Incoterms were repeatedly subject to revisions, the latest … and additions being made in
2000.
4)Incoterms define … of contracting parties only … delivery of the goods sold.
5)Lack of knowledge with regard to counterparties’ trading practices … to disputes and
… that … far-reaching timeand money-consuming consequences.
6) Incoterms do not remove all … in accomplishing a contract with all the arguments being resolved by the … laws.
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7)Though Incoterms relate to only the contract of sale, they certainly have some … for other auxiliary contracts.
8)Though it is evident that the … of Incoterms is limited to the rights and obligations of the parties under the contract of sale, account must be taken of the fact that they do not … all the duties the parties wish to include in the contract.
9)While … Incoterms into the contract of sale, do not forget to make a reference to a corresponding version of Incoterms.
10)The seller’s obligation is to place the goods … the buyer or deliver them at … .
READING
CLASSIFICATIONS OF INCOTERMS
Key concepts and terms
Match up the terms on the left with their definitions on the right.
1) freight |
a) a supplementary part; appendix |
2) customs clearance |
b) formal notification of facts, esp. when communicated from a |
|
distance |
3) attachment |
c) total weight of an article inclusive of the weight of the container and |
|
packaging |
4) advice |
d) the transportation (or carriage) of goods by water; the money paid |
|
for this |
5) invoice |
e) a document attached to goods in transit specifying their nature, port |
|
of origin, and destination as well as the route to be taken and the rate to |
|
be charged |
6) gross weight |
f) official permission for an aircraft, ship, etc. to proceed |
7) waybill |
g) a document issued by a seller to a buyer listing the goods or services |
|
supplied and stating the sum of money due |
Text 4.3. Read the text and jot down the most preferable terms for exporters; the most favourable terms for importer; and the most suitable terms for both parties. Organise all the terms in three columns.
Structure of Incoterms
Classification of Incoterms
In 1990, for ease of understanding, the terms were grouped in four basically different categories, namely, starting with the term whereby the seller only makes the goods available to the buyer at the seller’s own premises (the “E”-term: Ex works); followed by the second group whereby the seller is called upon to deliver the goods to a carrier appointed by the buyer (the “F”-terms: FCA, FAS and FOB); continuing with the “C”-terms where the seller has to contract for carriage, but without assuming the risk of loss of or damage to the goods or additional costs due to events occurring after shipment and dispatch (CFR, CIF, CPT and CIP); and, finally, the “D”-terms whereby the seller has to bear all costs and risks needed to bring the goods to the place of destination (DAF, DES, DEQ, DDU and DDP).
Group E
This group includes only one term – EX WORKS (... named place). “E”-term is the term in which the seller’s obligation is at its minimum. «Ex works» means that the seller has to do no more than place the goods at the disposal of the buyer at the agreed place – usually at the seller’s own premises or another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.
This term represents the minimum obligation for the seller, the passing point of cost and risk is when the goods leave the seller’s premises and the buyer has to bear all costs and risks involved in taking the goods from the seller’s premises.
However, if the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding
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