Incoterms 2020
Incoterms 2020 provide standard trade terms that parties may incorporate into a sale contract. The selected term and named place allocate specified tasks, delivery-related risk and costs between seller and buyer. They do not themselves create a complete sale contract or determine transfer of ownership. Apply the named rule, edition, contract terms and circumstances rather than assuming all terms allocate freight or insurance identically.
Worked example
A sale contract specifies an Incoterms 2020 rule and named place. The parties consult that rule to identify which party arranges carriage and where delivery risk transfers.
Common mistake
Assuming the Incoterms rule determines when legal title passes or replaces the rest of the sale contract.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (GLO) | Direct | September 2026–June 2027 |