Incoterms Law and Legal Definition

Incoterms refer to International Commercial Terms published by International Chamber of Commerce (ICC). They are internationally recognized standards and are used worldwide in international and domestic contracts for the sale of goods. It is a set of rules for the interpretation of the most commonly used trade terms in foreign trade which parties to a contract can agree upon to avoid misunderstandings, disputes and litigation. Scope of this is limited to matters relating to rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold.