In order to overcome the challenges of international trade referred to on the previous page, and in order to respond to the needs of either the overseas seller and buyer, it is necessary to have an internationally acceptable standard in place which defines the rights and responsibilities of buyer and seller in connection with payment and ownership of the goods and the responsibilities with regard to the booking of freight and insurance.
These rights and responsibilities are defined, or determined, by the terms of sale. The internationally accepted standards are known as the "INCO terms".