Question

What makes Incoterms so important; what are the legalities of these terms that guide the legal standing of an international transaction?

Answer 1

Incoterms are also known as international commercial terms which are the terms used in international commercial transactions. They are 3 letter terms which describe various words of transactions internationally that help in eliminating the chance of misunderstandings due lack of knowledge of different countries. These are internationally accepted by governments and courts and are hence legal . They help in smooth commercial transactions and hence are very important and are widely used in every commercial transaction which is done in a legal way.