Study Of The Risk Burden In The International Sale Of Goods

In the market activity, the risk is accompanied with the trade. Risk is a kind of loss, and it needs both the seller and the buyer to bear. How to undertake the risk concerns the interests of both sides directly. If both sides prescribe the limits on bearing of the risk in the contract, they should deal with it according to agreement naturally. However, if they haven't do it, they would depend on the laws to establish the rules on passing of risk and bearing, in order to distribute the loss that risk caused as rational and fair as possible to both sides. The main question concerned risk bearing is when the risk pass from the seller to the buyer.The risk is damage or loss of the goods that can't be attributed to both parties. Because the understanding of risk range is different, this text has summarized and discussed the force majeure, accidental event, the third party and natural characteristic of goods, and the relationships between these factors and risks.After definiting the risk, it need probe that when the risk takes place, how both parties bear it. In order to reduce the dispute, regulations have been made in domestic laws of various countries. There are three kinds of legislative precedents in the domestic laws on the rules of passing of the risk: The risk is passed from concluding a contract, such as France; The risk is passed with transfer of ownership, such as Britain; The third is at the time of delivery, for instance Germany and U.S.A., etc. Three legislative precedents base on different theoretical foundation, but modern domestic laws, international convention and international trade practice of country choose the third, because it conveys that the interests and the risk are in harmony and meets the needs of trade mode further.It is not enough to only have rules of passing of risk above, because the passing of risk relates to a lot : (1)The passing of risk with the liability of the parties for breach of contract. They get in touch each other when a risk takes placeand one party breaks a contract. Then how to share the responsibility depends on the extent of breach of contract.(2)With the liability for warrant of defects of goods. The latter applies after passing of risk.(3)With insurance. The parties can reduce losses that the risk brings by insuring.(4)With cooperative obligations. One party should offer cooperation to another party that will of both seller and buyer can be realized.A great deal of concrete provisions about rules of risk bearing can be seen among domestic laws, international convention, international trade practice. Some rules with representativeness and extensive suitability are chooses to analyze and compare : 《Uniform Commercial Code 》 . 《International Rules for the Interpretation of Trade Terms 2000》 , 《Revised American Foreign Trade Definitions 1941》,《Warsaw--Oxford rules 1932》, etc. Several aspects are taken into account : (1)The risk bearing when the trade involves transport ; (2)The risk bearing of the trade on goods in transit; (3)The risk bearing of the transaction with retained ownership; (4)The risk bearing in the long-range deal; (5)The risk bearing of paying by installments ; (6)The risk bearing under breach a contract.The last part has been studied and the civil legislation of our country, has analyzed the principles and special regulations on the risk bearing. It can be found that we adopt the principle of delivery, and make detailed rules. I have proposed some suggestions, in order to make the laws of our country more perfectly.