Which statement about Incoterms is correct?
Answer and explanation
Correct answer: C. They are ICC standard terms setting each party's duties on delivery, costs and risk in international sales
- Step 1: International sale contracts need clear terms on delivery.
- Step 2: Incoterms are published by the ICC and allocate costs, risks and delivery duties between buyer and seller.
Answer
They are ICC standard terms setting each party's duties on delivery, costs and risk in international sales.
Why not the others: They are not statutes and do not control prices. They do not decide jurisdiction. They are contract terms, not accounting rules, although they can affect when risks pass.
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