Comment On The Risk Transfer Mechanism Of Goods Under Sales Contracts

The risk transfer mechanism of goods under sales contracts is a coreissue in the Contract Law. Legislations of various nations andInternational Law have different stipulations on such issue. Due tothe fact that the mechanism involves core interests of both contractparties, the research to such mechanism has great practical significance.However, our “Contract Law” does not entirely inherit the risk transfermechanism of goods under the “UN International Sales of Goods”(hereinafter referred to as "CISG"), which brings about much chaos inpractice and controversy in academia as well.This paper consists of three parts except the introduction andperoration：The first part mainly sets out the fundamental concept of risk andrisk transfer. Prior to the research of risk transfer mechanism of goods,this paper first defines the concept of risk and analyzes the reasonthat leads to risks, and focuses on the reason “nature of subject matter”by case study. Secondly, the author introduces the delimitation of risktransfer and the resulting legal consequences.The second part(including the second and third chapters) is one of the major parts of this paper. Recently the Supreme People’s Court hasissued the “Judicial Interpretation of the Sales Contract Law”, ofwhich the Article11,12,13and14are the supplementation to the risktransfer mechanism of goods. By analyzing such four articles one-by-one,the author intends to provide some advices to improve our state ContractLaw regarding the risk transfer mechanism of goods.The third part is the other major priority, which mainly describesthe risk transfer mechanism of goods under one contract party’s breach.Firstly, the author defines the differences and connections betweenliabilities of breach and risk transfer mechanism, and secondly, theauthor provides some advices for the improvement of our relatedstipulations.