In 1996, a contract was made between a Korean seller (Claimant) and a Philippine buyer (Respondent) for the supply of car assembly machinery and equipment. The sales price covered shipment CIF to a named port in the Philippines. The contract was governed by Korean law and the 1990 Incoterms rules.

'Applicable law

The Sales Contract contains the following provision:

This Contract shall be governed by and construed in accordance with the laws of Korea and Incoterms 1990, as supplemented. In the event of conflict between the laws of Korea and Incoterms 1990, as supplemented, Incoterms 1990, as supplemented shall prevail and govern.'