Research On The Problem Of Risk-transfer In The International Sale Of Goods

Modern commercial transactions have always been dealt with transnationally. Due to its complicated delivery process, cargoes transported by air, sea and road inevitably undertake various accidental losses, such as stolen, fire, sinking, crush, leakage and abnormally rotten and deteriorated. These involve bilateral interests, and these arouse great concern with both parties on how to divide and bear these risks caused by loss. Indeed, transnational transactions will invariably meet much more risks than inside ones. One of the most important things reflected in business contracts, especially in transnational business, is how to divide and bear risk, i.e. risk-transfer. The article is preparing to introduce something about the concept, meanings and characteristics of risk, to study relative theories and certain rules and to analyze some cases about risk-transfer under the international trade customs. And then, I will make a comparison among correlative provisions of United Nations Convention on Contracts for the International Sale of Goods (CISC), International Rules for the Interpretation for Trade Terms, 2000 (INCOTERMS 2000) and Contract Law of PRC. Besides, I want to discuss some concrete contents and applied conditions of various principle of risk bearing and the impact of risk-transfer caused by breaching of contract. Finally, I wish to point out the defect existed in Contract Law about risk-transfer practically and theoretically and find out something available appeared in CISG, INCOTERMS 2000, Contract Law of PRC, Uniform Commercial Code (UCC) and Revised American Foreign Trade Definition, 1941. Several suggestions on improving contract law of risk transferring will be brought forward in this paper so as to systematize and materialize operable risk-transferring acts of China and I hope it useful in dealing with domestic and foreign trade.