Passing of Risk in International Sale Contracts under the CISG
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Abstract
The passing of risk is significant for sale contract in particular an international sale contract that is governed by the CISG. The point of time, that risk passes, will vary since the CISG’s provision allocates risk in different circumstances which rather complex. It further allows the parties of contract deviate its rules of risk allocation by agreeing to bind any practices or trade usage which may give a different outcome. As for trade usage, that is widely known such an Incoterm, will be applied to a contract even though the parties have not expressly agreed. To protect economic loss and certainly acknowledge in advance that the financial responsibility is giving to whom; subsequently, the parties should deliberate which rule will be governed to the contract.
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