Abstract

When tracing the history and development of trade terms, it becomes apparent that they mirror the development of international trade generally. The evolution of trade terms is not a legal matter, but has been shaped by commercial practice, which, in turn, is influenced by historical, economic, political and technological factors. Developments in transportation techniques, containerisation, technology and the movement towards e-commerce are the main drivers of evolving commercial practices that regulate the export and import of goods, and hence the form and content of the contracts of sale that control these transactions. This contribution tracks the historical development of trade terms, and more specifically that of international commercial terms (Incoterms) to show how this form of standardisation constantly reinvents itself to accommodate evolving mercantile practices of the day. By using their chronological development, predictions are made on how Incoterms will develop in the future. Their historical evolution is also used to analyse their legal nature and to determine whether the rules either constitute mercantile custom or trade usage or form part of a new lex mercatoria.