ABSTRACT
Parties to a transnational sales contract are at liberty to choose any terms they like. However, over the years transnational traders have developed certain terms through practice which are now so common that the obligations attached to them have also been recognised and standardised by the International Chamber of Commerce. Examples of such terms are: fob (free on board), cif (cost, insurance and freight), arrival (ex-ship) etc. Banks would also expect transnational sellers to use these terms as their duties under them have also been standardised.
