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CHAPTER 8
Buyer:
The legal entity requesting and buying goods, works or services
through contracts and, in most cases, in return paying for these.
Buyer’s option:
The right of a buyer to modify within a specified period of time any
one or more of the terms of contract as agreed in advance, e.g., to
increase or decrease the quantity indicated in a purchase contract by
a specified percentage. Buyer’s option may be open on other terms
and conditions in the contract, if so provided, e.g. port of discharge,
delivery lot, size or time, etc. See also Contract modification and
Supplier’s option.
Buyer’s market:
A buyer’s market is said to exist when supply exceeds demand, so
that goods are readily available with the result that the buyer can
exert some pressure on prices and drive good bargains.
Candidate:
Aphysical or juridical person invited to take part in public procurement
or seeking to be so invited. See also Bidder and Tenderer.
Carriage and
insurance paid:
Incoterm ‘Carriage and Insurance Paid to’ means that the supplier
has the same obligations as under CPT but with the addition that
the supplier has to procure cargo insurance against the buyer’s risk
of loss of or damage to the goods during the carriage. The supplier
contracts for insurance and pays the insurance premium. The buyer
should note that under the CIP term the supplier is only required
to obtain insurance on minimum terms. The CIP term requires the
supplier to clear the goods for export. This term may be used for
any mode of transport including multimodal transport. See also:
Incoterms.
Carriage paid to:
Incoterm ‘Carriage paid to’ means that the supplier pays the freight
for the carriage of the goods to the named destination. The risk of
loss of or damage to the goods, as well as any additional costs due
to events occurring after the time the goods have been delivered
to the carrier, is transferred from the supplier to the buyer when
the goods have been delivered into the custody of the carrier. The
CPT term requires the supplier to clear the goods for export. This
term may be used for any mode of transport including multimodal
transport. See also Incoterms.
Carrier:
A person or a firm who contracts to carry goods by any method of
transport.
Cartel:
An organisation or group of organisations that colludes to determine
the quantities and/or prices of goods or services to be provided by
each of its members.
GLOSSARY