ABSTRACT

Art. 68 CISG deals with the passing of risk when goods are sold in transit. Art. 68, sentence 1 CISG states the general rule that, if the goods are sold in transit, the risk passes from the time the contract of sale is concluded. However, according to Art. 68, sentence 2 CISG, if the circumstances so indicate, the risk passes at the moment the goods are handed over to the carrier who issued the documents representing the carriage contract. Although, from a systematic point of view, sentence 2 is an exception to sentence 1, in practice, it is of higher significance. Sentence 3 states the counter-exception, in that where the seller is held to have known of any deficiencies or losses of the goods without disclosing them at the time of the conclusion of the contract, it bears the risk of these deficient or lost goods.