The International Chamber of Commerce introduced Incoterms® to achieve some form of international standardisation pertaining to the delivery of goods, passage of risk, allocation of costs and customs formalities under an international contract of sale. These rules "explain a set of three-letter trade terms reflecting business-to-business practice in contracts for the sale of goods" (ICC Incoterms® 2010 (2010) 5). They are formulated with reference to the most consistent business practices and customs at a given point in time and are regularly updated to keep up with developments in international commercial practice (Foreword to Incoterms® 2010). By standardising trade term content Incoterms® achieve legal certainty, which means a reduction in disputes and, hence, also in transaction costs.