Question

which term of trade is with the maximum obligation on the buyer and minimum obligation on the seller

Answer 1

EXW – Ex Works is the trade term which has maximum obligation on the buyer and minimum obligation on the seller. EXW - Ex Term is the process of initiating the quotes to sale the products as the starting stage of transaction. It is process of sales delivery from distance places. The buyer orders the products with his own risk. Here, the liability of the seller is restricted to very less risk. But the buyer should bear all the risk during the goods was delivered by seller. When the seller agreed to send the goods through any transport of means from long place, the risk of delivery is very low. In case any uncertainties happens during shipment, the seller need to bear the risk and cannot able to claim for the compensation for any loss or damage caused during shipment.

Actually such shipments are related with EXW-Ex work terms of trade of exports and imports of all types of goods across all the countries. There is also lot of export and import documentation is needed to follow. Through this term of trade, only buyer has the high responsibility of clearing such export documentation which takes more time. And the buyer need to experience the evil effects of rules and regulations framed by the countries in which buyer obliges to buy the goods and services in the form of imported goods. Such evil effects are mixed with the risk of buyers to pay more with the increase in trade tariff and also there is no agreement are signed with seller in order to hold responsibility if any risk happens during delivery of goods and services.