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ACCA Applied Skills · Corporate and Business Law (Global) · Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms

Each Incoterms 2020 rule is presented in the same format, with ten articles listing the seller's obligations in parallel with the buyer's. Which of the following is the best reason for this structure?

The parallel structure pairs the seller's and buyer's obligations on the same topics, such as delivery, risk and costs, so the parties can easily compare them. It does not bind non-agreeing parties or remove the need to name the place or port.

  1. AIt allows the parties to compare each side's obligations for the same topic, such as delivery or riskCorrect
  2. BIt makes the rules legally binding on parties who have not agreed to use them
  3. CIt replaces the need for the parties to name a place or port in the contract

Explanation

The mirrored A (seller) and B (buyer) articles on topics such as delivery, transfer of risks, carriage and costs let the parties see each side's duties together. The structure does not make rules binding without agreement, and the named place or port is still needed to apply the rule.

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