Matchup of CISG Article 67 with ULIS/ULF Go to Database Directory || Go to CISG Table of Contents

LEGISLATIVE HISTORY

CISG ANTECEDENTS


     CISG Article 67                   ULIS Article 19(2) and (3)
                                                  
1. If the contract of sale involves   2. Where the contract of sale 
carriage of the goods and the         involves carriage of the goods 
seller is not bound to hand           and no other place for delivery 
then over at a particular place,      has been agreed upon, delivery 
the risk passes to the buyer when     shall be effected by handing 
the goods are handed over to          over the goods to the carrier 
the first carrier for transmission    for transmission to the buyer. 
to the buyer in accordance with   
the contract of sale.  If the         3. Where the goods handed 
seller is bound to hand the goods     over to the carrier are not 
over to a carrier at a particular     clearly appropriate to 
place, the risk does not pass to      performance of the contract 
the buyer until the goods are         by being marked with an 
handed over to the carrier at         address or by some other 
that place.  The fact that the        means, the seller shall, in 
seller is authorized to retain        addition to handing over the 
documents controlling the             goods, send to the buyer notice 
disposition of the goods does         of the consignment and, if 
not affect the passage of the risk    necessary, some documents 
                                      specifying the goods. 
2. Nevertheless, the risk does  
not pass to the buyer until the         ULIS Article 97(1) 
goods are clearly identified to  
the contract, whether by              The risk shall pass to the buyer 
markings on the goods, by             when delivery of the goods is 
shipping documents, by notice         effected in accordance with the 
given to the buyer or otherwise.      provisions of the contract and 
                                      the present Law. 
 
SEE ALSO: 
 
ULIS Article 100.  If, in a case to which paragraph 3 of Article 19 
applies, the seller, at the time of sending the notice or other  
document referred to in that paragraph knew or ought to have known 
that the goods had been lost or had deteriorated after they were  
handed over to the carrier, the risk shall remain with the seller until
the time of sending such notice or document. 
 
ULIS Article 101.  The passing of risk shall not necessarily be 
determined by the provisions of the contract concerning expenses.  


Comments on the match-up

"The idea of linking the passing of the risk to the delivery of the goods, as is the case under ULIS, did not find favour during preliminary work on the CISG and was dropped. The main criticism was levied at the excessively complicated nature of 'delivery' owing to its quite different functions. Thus, 'delivery' served to define the seller's obligations, the time and place for making payment, and also the point when risk passed. In particular, ULIS' rules on the passing of the risk in the case of the delivery of defective goods were considered to be unnecessarily complicated, bcause here ULIS was obliged to drop the link between the passing of risk and delivery (Article 97(2) ULIS). However, the decision to separate the passing of risk from the delivery of the goods was ultimately a question of legislative technique. In essence, the CISG rules on the passing of risk largely correspond to those of ULIS. That is also the case in regard to a contract of sale involving carriage of the goods, if one ignores the fact that the CISG has dropped the rule concerning the retroactive passing of risk when notice of appropriation to the contract is given after the handing over of the goods to a carrier (cf. Article 67(2) in conjunction with Article 100 ULIS)." Hager in Commentary on the UN Convention on the International Sale of Goods, Peter Schlechtriem ed. (Oxford l998) 504 [citations omitted].


Pace Law School Institute of International Commercial Law - Last updated June 17, 1997
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