Development of incoterms in international sale of goods.

Abstract

This thesis explores the development of Incoterms. It commences, in the First Chapter, with the explaining that Incoterms provide a set of rules for the interpretation of international trade terms, which have a long history. This Chapter traces the historical origins of the FOB and CIF terms. It reviews the relevance and the main principals of other early trade terms and concludes by showing the need for their harmonization. The Second Chapter examines the history of the International Chamber of Commerce, its organs involved and procedure followed in the work on Incoterms. It also refers to other attempts of the standardization of the trade terms. In the Third Chapter functions and character of Incoterms are overviewed and their development until 1979 is analysed with reference to the reasons for the introduction of the new trade terms. The Fourth Chapter explores developments in the transport techniques and shows how Incoterms were changed in 1980 in order to keep pace with these new transport practices. The Fifth and Sixth Chapters examine how Incoterms were revised in 1990 and 2000 in order to reflect actual international commercial practices and to provide user-friendly and unambiguous definitions. The Seventh Chapter discusses the question of the application of Incoterms to contracts for the international sale of goods. The contractual binding force of Incoterms is illustrated by the case law and the development of their legal status in a number of countries is reviewed. This Chapter also examines, with 2 reference to the recent cases, whether Incoterms can be applied through article 9(2) of the U.N. Vienna Convention 1980. Finally, the Conclusion evaluates whether Incoterms have always dully reflected changes in international trade. The author comments on their future development and concludes by referring to the increasing worldwide usage of Incoterms.