PASSING OF RISK IN THE SALE OF GOODS ORDINANCE NO 11 OF 1896 IN SRI LANKA; AN ANTIQUATED THEORY: A COMPARATIVE STUDY
Article Sidebar
Main Article Content
Abstract
Sale of Goods law in Sri Lanka is governed by Sale of Goods Ordinance No 11 of 1896. The risk of accidental loss of the goods sold passes prima facie when the property passes as per section 21(1) of the Sale of Goods Ordinance No 11 of 1896 in Sri Lanka. Section 21(1) – “Unless otherwise agreed, the goods remain at the seller’s risk until the property therein is transferred to the buyer, but when the property therein is transferred to the buyer the goods are at the buyer’s risk, whether delivery has been made or not”.
This is an antiquated rule found in the Sale of Goods Ordinance No 11 of 1896 derived from its predecessor the UK Sale of Goods Act of 1893. More modern texts, such as the Uniform Commercial Code, the Uniform Laws on International Sales and the Vienna Convention on Contracts for the International Sale of Goods, provided that, as a rule, the risk shall pass on delivery of the goods.
Article Details
References
32 NLR (New Law Reports), 259.
Saleem Marsoof PC, Introduction to International Sale of Goods, 33,(2006).
Zoi Valioti, “Passing of Risk in International Sale Contracts”, Nordic Journal of Commercial Law, 14, (2002).
S. Bollee, ‘The Theory Risks in the 1980 Vienna Sale of Goods Convention” , 256, available at http://cisgw3.law.pace.edu/cisg/biblio/bolle.html, (last accessed April.30, 2016).
K.Pantelidou, "Issues from the allocation of risk under the Vienna Convention for the International Sale of Goods" 97, Private Law Chronicle, (2002).
B.Nicholas in C.M.Bianca and M.J.Bonell (eds), Commentary on the International Sales Law. The 1980 Vienna Sales Convention (Milan: Giuffrè, 1987) art 68, para 2.3.
Demby Hamilton and Co Ltd v Barden, [1949] 2 All ER 435.
Dynalex, “The Sale of Goods Ordinance No 11 of 1896-A Long way to go?”, available at https://dynalex.wordpress.com/2012/10/25/the-sale-of-goods-ordinance-no-11-of-1896-a-long-way-to-go. (last accesed on April. 30, 2016)