Contracts for the sale of goods often give rise to disputes, among other things, with respect to quality, price and payment, transportation and timing, and conditions of delivery. Disputes may be avoided by providing clear contractual provisions.
International Commercial Terms (Incoterms) will provide a set of international rules for interpreting the most commonly used terms in international trade. The use of Incoterms helps prevent or reduce uncertainties of interpretation among different countries. In this way, the uncertainties of different interpretations in different countries can be avoided or at least reduced to a considerable degree. Nevertheless, where disputes arise they will need to be resolved and preferably in a non-adversarial manner if the business relationship is to persist thereafter.