property

November 22, 2017

What is an Inspection Clause?

In order to ensure that the buyer officially accepts the products being sole, it is important to include an inspection clause in any purchase and sales agreement.  An inspection clause  mandates that the buyer has a duty to inspect the goods upon receipt and report any problems to the seller.  This requirement ensures that, if the shipment is defective in some way, the buyer’s inspection will catch it and it won’t arise as a problem later on.
October 25, 2017

What do the Incoterms EXW and DDP mean?

Ex Works (EXW) and Delivered Duty Paid (DDP) are the two Incoterms that are the most heavily weighted toward either the buyer or the seller.  Under the term EXW, the buyer is responsible for all aspects of the shipment, even packaging of the goods under some circumstances.  On the other hand, DDP requires the seller to take responsibility for delivering the goods, and paying all fees, from the seller’s warehouse all the way to the buyer’s final destination.  Additionally, unlike FOB or CFR, both of these terms may be used regardless of the mode of transport and may be applied […]
October 2, 2017

When are Incoterms CRF and CIF terms used?

The Incoterms Cost and Freight (CFR) and Cost, Insurance and Freight (CIF) mean that the seller is then responsible for loading the products and paying any fees associated with the port and shipping.  Therefore, CFR and CIF are commonly used terms in purchase and sale agreements where the buyer has slightly more negotiating power than the seller.
September 12, 2017

What do the Incoterms CFR and CIF mean?

Goods shipped under the condition Cost and Freight (CFR) must be loaded onto the method of transport by the seller.  The seller is then responsible for paying any fees associated with the port of loading as well as paying the shipping cost to deliver the goods to the buyer.  However, the cost of insurance (if necessary) and all fees associated with the port of call are borne by the buyer.