The phrase ‘payment before breaking bulk’ has long been used in contracts for the supply of grain and other bulk commodities. However, despite its apparent simplicity, there are still many contradictory and outright mistaken interpretations. If one tries to find an explanation in open sources, one will see that there is still no unified and precise understanding of this term. Let us examine a specific example from a typical contract clause: Payment: 100% net cash…
Incoterms 2020 are international rules that define the terms of delivery of goods in international trade. The abbreviation derives from the English phrase International Commercial Terms. The Incoterms 2020 rules were developed by the International Chamber of Commerce (ICC) and entered into force on 1 January 2020, replacing the previous edition – Incoterms 2010. What are Incoterms 2020 Incoterms 2020 serve as a kind of international trade language, helping the parties to international contracts clearly…
CPT is an Incoterms term under which the seller undertakes to organise and pay for the transportation of the goods to a destination agreed with the buyer. However, the risk of loss or damage to the goods transfers to the buyer at the moment the goods are handed over to the first carrier. The term frequently appears in international contracts as “carriage paid to Incoterms” or “CPT Incoterms 2020” and stands for Carriage Paid To.…
A performance bond is an unconditional guarantee provided by a bank to pay a specified amount to the beneficiary upon the first demand. This guarantee protects the beneficiary’s interests in cases where the seller, supplier, or another party fails to meet their contractual obligations. In international trade and construction projects, a performance bond is a key instrument to mitigate the risks associated with non-fulfilment of obligations. A performance bond is often used in contracts for…
