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BUSINESS CONTRACTS.
Interpretation of Terms.
Standard rules for the interpretation
of 11 trade terms current in inter
national trade, to go under the abbre
viated name of "Incoterms 1936," have
just been published by the International
Chamber of Commerce, Paris. This 28
page publication contains the rules in
three languages, English, French and
German, set up in parallel columns to
facilitate reference by traders of different
nationalities. Norwegian and Swedish
translations are being prepared by the
International Chamber of Commerce's
national committees in the countries con
cerned, in collaboration with member
trade associations.
The purpose of these international
rules, which is explained in detail in an
introduction prepared by the chairman
and officers of the International Chamber
of Commerce's trade terms committee, is
to provide those merchants who are not
in a position to refer to the standard
contracts or general sales conditions of
some particular branch of. trade, with a
clear statement of the obligations they
shoulder when buying or selling goods on
ex-works, f.o.r., free . . . (named port
of shipment), f.as., f.o.b., c. and f.,
c.i.f., freight or carriage paid to, free or
free delivered, ex ship or ex quay terms.
By referring in their contracts to "Inco
terms 1936," the parties will be able to
avoid the many disputes and lawsuits
which arise so frequently out of mis
understandings as to the exact signi
ficance of the terms used.
Apart from stating the essential obli
gations of the buyer and seller under
each of the terms dealt with, the rules
give a solution to many detailed problems
which worry the trader in practice. They
specify, for instance, who has to supply
and pay for the packing, who has to bear
the costs of weighing, measuring and
counting the merchandise at station or
port, who is responsible for providing
and paying the cost of certificates of ori
gin, consular invoices and the necessary
visas when required.
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