Your client, Georgian wine producer GeoWine is planning to enter into a long-term multi-million-dollar transaction with the French wine store, FrWine. This is the first time that the parties transact. FrWine agreed to pay premium on purchase price and purchase the wine for more than market price with the condition of payment after delivery of first shipment of wine. GeoWine does not like the condition since it fears that FrWine may not pay after the wine is delivered. However, GeoWine really wants to sign the contract because the price is unprecedently high and it can make lots of profits. At the same time, GeoWine does not have resources to ship the goods all the way to France and FrWine agreed to take care of the shipment once the goods are delivered to Poti Sea Port, which is a great condition for GeoWine.
1. How can GeoWine secure its risk of FrWine not paying the purchase price after delivery of the goods?
2. Which Incoterm should the parties put in the contract to reflect their agreement on shipment?
Answer should be substantiated.
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