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    Inco Term Case Study

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    SYED HARIS HASHMI
    The company in Germany sold tanks to a customer in Switzerland on CPT terms, where the seller arranges and pays for transport but the risk of loss transfers to the buyer when the goods are delivered to the carrier. During transport, the tanks were damaged. Per the CPT terms, the buyer bears the risk of loss since the date the tanks were delivered to the carrier, so the buyer is responsible for the damage and cannot refuse payment or demand new tanks from the seller.

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    Inco Term Case Study

    Uploaded by

    SYED HARIS HASHMI
    1K views4 pages
    The company in Germany sold tanks to a customer in Switzerland on CPT terms, where the seller arranges and pays for transport but the risk of loss transfers to the buyer when the goods are delivered to the carrier. During transport, the tanks were damaged. Per the CPT terms, the buyer bears the risk of loss since the date the tanks were delivered to the carrier, so the buyer is responsible for the damage and cannot refuse payment or demand new tanks from the seller.

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    INCO TERM CASE STUDY

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    The company in Germany sold tanks to a customer in Switzerland on CPT terms, where the seller arranges and pays for transport but the risk of loss transfers to the buyer when the goods are delivered to the carrier. During transport, the tanks were damaged. Per the CPT terms, the buyer bears the risk of loss since the date the tanks were delivered to the carrier, so the buyer is responsible for the damage and cannot refuse payment or demand new tanks from the seller.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views4 pages

    Inco Term Case Study

    Uploaded by

    SYED HARIS HASHMI
    The company in Germany sold tanks to a customer in Switzerland on CPT terms, where the seller arranges and pays for transport but the risk of loss transfers to the buyer when the goods are delivered to the carrier. During transport, the tanks were damaged. Per the CPT terms, the buyer bears the risk of loss since the date the tanks were delivered to the carrier, so the buyer is responsible for the damage and cannot refuse payment or demand new tanks from the seller.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    INCO TERM CASE STUDY.

    A company manufactures large tanks at its production site in Germany and sells them to
    a customer in Switzerland. The buyer and seller have agreed "CPT Zürich
    Incoterms® 2010" as delivery conditions. The company employs a service provider to
    transport the tanks to Switzerland. During transportation the tanks are damaged and the
    customer refuses to accept them. He demands the delivery of new tanks.

    Is responsibility for the damage to the tanks to be borne by the buyer or seller? Can the
    buyer refuse to pay for the goods or is he bound to pay the sale price despite the
    damage? Has the seller discharged his obligation to deliver the goods?

    ANSWER:

    The interpretation of Incoterms® is straightforward: in the case of supplies made CPT


    the seller is responsible for arranging transportation and bears the related costs.
    However, the risk of losing the goods is borne by the buyer as from the contractual
    place of delivery. Therefore, if it cannot be determined who was liable for the damage to
    the goods, the buyer is responsible for the damage due to the early transfer of risk.
    Therefore, the customer cannot demand that the company supply new tanks.

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