Passing of risk under the CISG
The CISG addresses when risk of loss or damage passes from seller to buyer. For a carriage contract where the seller need not hand goods over at a particular place, article 67 generally passes risk on handover to the first carrier, provided the goods are clearly identified to the contract. Other rules apply to particular-place carriage, goods sold in transit and cases under article 69. The contract, agreed trade terms and applicable Convention provisions can alter the analysis. Passing risk is distinct from transfer of ownership.
Worked example
A seller hands identified goods to the first carrier under a qualifying carriage contract with no specified handover place. The parties assess article 67 and any agreed trade term to determine whether risk has passed.
Common mistake
Assuming risk always passes when ownership passes, or applying the first-carrier rule without checking identification and the required handover place.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (GLO) | Direct | September 2026–June 2027 |