When terms of delivery are agreed, terms and conditions (
Incoterms) are obligatory, as their texts determine internationally, legally identical conditions. Freely phrased conditions - especially translations - can be interpreted differently and are, consequently, not unique.
This clause says that the seller takes the responsibility for any danger until the goods are transmitted to the carrier named by the buyer. As considerable damages can be claimed, e. g. in case of goods sinking (lorry accident etc.) which consequently can lead to loss of production at the customer, a clear determination is essential.