Each party shall bear the costs of performance of its obligations. 



The performance of obligations often entails costs, which may be of different kinds: transportation costs in delivering goods, bank commission in making a monetary transfer, fees to be paid when applying for a permission, etc. In principle, such costs are to be borne by the performing party.


Other arrangements may of course be made by the parties and there is nothing to prevent the performing party from including those costs in advance in the price it quotes. The rule set out in Article 6.1.11 applies in the absence of such arrangements.


The provision states who shall bear the costs, not who shall pay them. Usually, it will be the same party, but there may be different situations, for example where tax regulations place the burden of payment on a specific party. In such cases, if the person who has to pay is different from the person who must bear the costs under Article 6.1.11, the latter must reimburse the former.




A, a consultant, agrees to send five experts to perform an audit of B’s company. Nothing is said concerning the experts’ travel expenses, and A does not take those costs into account when determining its fees. A may not add the travel expenses to the bill.

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