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Source: Doc. B(1) Reproduced from UNCITRAL Yearbook VIII (1977), A/32/17, pages 25-64

EXCERPT FROM ANNEX I

Report of Committee of the Whole I relating to the
draft Convention on the International Sale of Goods

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CISG
number
Art. 69

Article 66

547. The text of article 66, as adopted by the Working Group on the International Sale of Goods, is as follows:

"(1) In cases not covered by article 65 the risk passes to the buyer as from the time when the goods were placed at his disposal and taken over by him.
"(2) If the goods have been placed at the disposal of the buyer but they have not been taken over by him or have been taken over belatedly by him and this fact constitutes a breach of the contract, the risk passes to the buyer at the last moment he could have taken over the goods without committing a breach of the contract. If the contract relates to the sale of goods not then identified, the goods are deemed not to be placed at the disposal of the buyer until they have been clearly identified to the contract."

Paragraph (1)

548. The Committee referred to the Drafting Group a proposal which had as its purpose to distinguish between the occasions on which the risk of loss would pass when the goods were taken over by the buyer and the occasions on which the risk of loss would pass as a consequence of the goods having been placed at his disposal.

549. The Committee did not retain a proposal designed to specify that, if the terms of delivery of a contract called for the seller to place the goods at the disposal of the buyer during a specified period of time, the risk of loss should pass at the time when the goods were placed at the buyer's disposal and not when they were actually taken over by him.

Paragraph (2)

550. The Committee considered a proposal that paragraph (2) read as follows:

"(2) If, however, the buyer is required to take over the goods at a place other than any place of business of the seller, the risk passes when the time for delivery has come and the buyer is aware, or has received notice, of the fact that the goods are placed at his disposal at such place."

551. In support of this proposal it was stated that paragraph (2) would govern the time at which the risk passes where the goods are at a place other than a place of business of the seller, such as a public warehouse. In some legal systems the taking over of the goods from a public warehouse may be done by the handing over of a negotiable document of title or the acknowledgement by the third person that he holds the goods for the benefit of the buyer. However, this result did not necessarily follow from the present text. In addition, differences in national laws as to documents of title and warehouse receipts made unification in this area difficult. Accordingly the proposal would resolve uncertainty by emphasizing physical delivery of the goods but in addition permitting risk to pass when the time for delivery had Come and the buyer was aware, or had received notice, of the fact that the goods had been placed at his disposal at a place other than the place of the seller.

552. After deliberation, the Committee adopted this proposal in principle.

Decision

553. The Committee, in the light of the decisions discussed in the above paragraphs, recommends that the Commission should adopt the following text, now renumbered as article 67:

"Article 67

"(1) In cases not covered by articles 65 and 66 the risk passes to the buyer when the goods are taken over by hint or, if he does not do so in due time, from the time when the goods are placed at his disposal and/he commits a breach of contract by failing to take delivery.
"(2) If, however, the buyer is required to take over the goods at a place other than any place of business of the seller, the risk passes when delivery is due and the buyer is aware of the fact that the goods are placed at his disposal at that place.
"(3) If the contract relates to a sale of goods not then identified, the goods are deemed not to be placed at the disposal of the buyer until they have been clearly identified to the contract." [page 64]

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Pace Law School Institute of International Commercial Law - Last updated July 26, 2007
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