The risk in respect of goods sold in transit passes to the buyer from the time of the conclusion of the contract. However, if the circumstances so indicate, the risk is assumed by the buyer from the time the goods were handed over to the carrier who issued the documents embodying the contract of carriage. Nevertheless, if at the time of the conclusion of the contract of sale the seller knew or ought to have known that the goods had been lost or damaged and did not disclose this to the buyer, the loss or damage is at the risk of the seller.
OUTLINE OF ISSUES
Reproduced with permission of UNCITRAL
68A Goods sold during transit: General rule on passage of risk 68A1 Risk passes on conclusion of contract 68B Circumstances indicating agreement on risk transfer as of shipment 68B1 Usage (art. 9)
68B2 Transfer to buyer of documents - e.g., insurance policy 68C Seller did not disclose knowledge that goods had been lost or damaged: 68C1 Risk remains on seller 68D Other problems
DESCRIPTORS
Passage of risk ; In transit sale of goods
CASE ANNOTATIONS: UNCITRAL DIGEST CASES PLUS ADDED CASES
Presented below is a composite list of Art. 68 cases reporting these UNCITRAL Digest cases and other Art. 68 cases. All cases are listed in chronological sequence, commencing with the most recent. Asterisks identify the UNCITRAL Digest cases, commencing with the 23 June 1998 citation reported below. Cases are coded to the UNCITRAL Thesaurus.
English texts and full-text English translations of cases are provided as indicated. In most instances researchers can also access UNCITRAL abstracts and link to Unilex abstracts and full-text original-language case texts sourced from Internet websites and other data, including commentaries by scholars to the extent available. Russia 3 June 2003 Arbitration Court [Appellate Court] for the Northwestern Region 68A ; 68B [translation available]
* Germany 23 June 1998 Oberlandesgericht [Appellate Court] Hamm [translation available]
* Austria 10 December 1997 Vienna Arbitration award S 2/97 [translation available]
Germany 10 June 1997 Landgericht [District Court] Paderborn China 1 April 1997 CIETAC Arbitration Award [CISG/1997/02] (Fishmeal case) 68A1 [translation available]
* Germany 12 October 1995 Landgericht [District Court] Trier [translation available]
China 10 March 1995 CIETAC Arbitration Award [CISG/1995/03] (Polyethylene film case) [translation available]
The UNCITRAL Digest of case law on the United
A/CN.9/SER.C/DIGEST/CISG/68 [8 June 2004]. Reproduced with the permission of UNCITRAL.
The risk in respect of goods sold in transit passes to
the buyer from the time of the conclusion of the
contract. However, if the circumstances so indicate,
the risk is assumed by the buyer from the time the
goods were handed over to the carrier who issued the
documents embodying the contract of carriage.
Nevertheless, if at the time of the conclusion of the
contract of sale the seller knew or ought to have
known that the goods had been lost or damaged and
did not disclose this to the buyer, the loss or damage
is at the risk of the seller. DIGEST OF ARTICLE 68 CASE LAW
1. Article 68 provides rules for the passing of risk when goods are sold in transit. The
general rule is that the risk passes from the time the contract of sale is concluded. If, however,
the circumstances so indicate, the risk is deemed to pass when the goods are handed over to
the carrier. Only if the seller knew or ought to have known that the goods were lost or
damaged at the time the contract is concluded and did not inform the buyer will the risk remain
with the seller. Although article 68 has been cited in reported decisions, these decisions do not
interpret its contents.[1] FOOTNOTES
* The present text was prepared using the full text of the decisions cited in the Case Law on UNCITRAL Texts (CLOUT) abstracts and other citations listed in the footnotes. The abstracts are intended to serve only as summaries of the underlying decisions and may not reflect all the points made in the digest. Readers are advised to consult the full texts of the listed court and arbitral decisions rather than relying solely on the CLOUT abstracts.
[Citations to cisgw3 case presentations have been substituted [in brackets] for the case citations provided in the UNCITRAL Digest. This substitution has been made to facilitate online access to CLOUT abstracts, original texts of court and arbitral decisions, and full text English translations of these texts (available in most but not all cases). For citations UNCITRAL had used, go to <http://www.uncitral.org/english/clout/digest_cisg_e.htm>.] 1. CLOUT case No. 338 [GERMANY Oberlandesgericht [Appellate Court] Hamm 23 June 1998, available online at <http://cisgw3.law.pace.edu/cases/980623g1.html>] (affirming lower court without reference to art. 68);
[AUSTRIA Vienna Arbitration Award, case No. S 2/97 of 10 December 1997, available online at <http://cisgw3.law.pace.edu/cases/971210a3.html>] (citing art. 68);
CLOUT case No. 170
[GERMANY Landgericht [District Court] Trier 12 October 1995, available online at <http://cisgw3.law.pace.edu/cases/951012g1.html>] (citing art. 68).
Nations Convention on the International Sale of Goods [*]
ARTICLE 68
Pace Law School
Institute of International Commercial Law - Last updated September 1, 2006
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