Seller (ABC Trading Co, Vietnam) offers 100 tons of coffee to Buyer (Zin Co., Japan) with the following conditions:

Question. Seller agrees to deliver the goods to buyer at the following prices: (1) USD120,000 FOB Saigon port; USD140,000 CIF Osaka port; USD160,000 DAP at buyer's warehouse in Osaka, Japan. Freight cost including loading fee to bring the goods from Saigon port to Osaka port is USD15,000. Transportation cost including loading and unloading fee to bring the goods from Osaka port to the buyer's warehouse is USD10,000; Insurance rate is 0.2%. Import duty is 5% of the FOB price.

1. Buyer will choose to buy at what price? Why?
2. What must the seller pay costs and bear risks under the term of DAP at the buyer's warehouse in Osaka?
3. Discuss the major differences between CIF and DAP?