Price Terms

Price Terms are the core clauses in an international trade contract that specify the composition of the goods' price, the allocation of risks, the bearing of costs, and the place of delivery. They are usually used in conjunction with International Commercial Terms (Incoterms), such as FOB, CIF, EXW, etc. Their application scenarios cover quoting, contract signing, letters of credit, and document preparation. Precautions include: the version of Incoterms (e.g., Incoterms 2020) must be explicitly specified to avoid divergent interpretations due to version differences; they must be consistent with the payment method and transport clauses; the price terms should clearly state the currency unit, unit of measurement, and trade term. Distinction from other terms: Price Terms are different from Payment Terms, which focus on the time and method of payment; they are also different from the goods description, which only describes the goods themselves. Price Terms directly determine the boundaries of costs, risks, and responsibilities of both buyer and seller, and are the focus of foreign trade negotiations.