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The contracts are the foundation for the running business and obviously in many cases there may be disputes between the contract parties. Thus, the commonly accepted terms for the international contracts and especially for the international commercial transactions are highly necessary parts.

Lex Mercatoria is a law system that has been adopted by many national legal systems over the last decades. This term denotes the legal system with the full amount of procedures, performers, guiding principles and organizational techniques for private transactional trading relationships.

Michael Porter has put a number of models on the subject of the Lex Mercatoria system that includes the classical, the neoclassical, Keynesian and the New Trade theories. They defined factors of national competitiveness from different points of view. The structure of the Lex Mercatoria’s institution is placed on two fronts: the general aspects of the stable national contract law and the system of healthy and competing transnational arbitration residences.

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Lex Mercatoria is the regular instrument used by the traders and arbitrators. Therefore, it is considered to act as the governing law in the majority of the contracts, taking into account five different aspects: the policy setting, the corporate strategy, the actions, the capital investments and decisions on them and responsibility of the stakeholders.

The International Chamber of Commerce, nongovernmental business regulatory body, developed and published the Incoterms. The Incoterms are widely used in the public sales practice in order to apply the international transactions of goods. Their core objective indicates the following issues: reduction of costs and risks, explanation of the communicative subject, transportation and delivery of goods. Hence, the integrated objective of the Incoterms can be defined as the reducing and removing of the uncertainty, which may take place due to the different approaches of the contract interpretation in the different countries.

The Incoterms are not the source of law. That is why it is not possible to apply the Incoterms as the tool of forcing the contract. Their central purpose is providing both parties with trustworthy and equal terms. Consequently, the Incoterms must be practical regulative tools for the international trade relations development. The obligations and responsibilities between the seller and the buyer parties are regulated by the Incoterms in the light of the delivery process.

It is also important to pay additional attention to the fact that the nature of Incoterms involves the tendency that all the changes in the new versions are not radical, but significant transformations, which should be taken in account by the traders while carrying out the transportation operations.

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