Damage responsibility
‘Company AYZ manufactures large Pipes at its production site in China and sells them to a customer in
Oman. The buyer and seller have agreed “CPT Duqm Incoterms 2010” as delivery conditions. The
company employs a service provider to transport the tanks to Oman. During transportation the tanks are
damaged and the customer refuses to accept them. He demands the delivery of new tanks.’
DISCUSSION QUESTION: Is responsibility for the damage to the tanks to be borne by the buyer or seller?
Can the buyer refuse to pay for the goods or is he bound to pay the sale price despite the damage? Has
the seller discharged his obligation to deliver the goods? Discuss all these questions in a short paragraph