disclose it to buyer or contract establishes a longer period of guarantee

Disclose it to buyer or contract establishes a longer

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disclose it to buyer or contract establishes a longer “period of guarantee” Curing Defects If seller delivers early, he may correct any defects up to agreed upon delivery date
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Buyer’s Obligations Payment of the Price Buyer obliged to take whatever preliminary steps required to make payment in accordance with the contract and any relevant laws/regulations Buyer must pay price at the time and place in contract If no time specified, at the time when the “goods or the documents” are delivered Unlike Civil law countries, no request/formality required by Seller to require payment, subject to inspection of goods If no payment place specified If delivery place – then payment at delivery place If no delivery place, then payment at seller’s place
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Buyer’s Obligations Taking Delivery Buyer obligated to cooperate with seller to facilitate transfer and actually “take over the goods” Buyer who fails to cooperate will be responsible for any resulting costs Buyer failing to take delivery assumes risk for any damage to the goods afer that time “carpet delivery example”: Seller delivered carpet to Buyer at specified time and place, buyer’s shop was closed, seller lef carpet at Seller’s shop. Rain ruined the carpets. Court found buyer responsible for loss “hay purchase example”: Seller sold bale of hay to buyer, buyer to pick up hay bale, hay bale destroyed by fire. Buyer responsible for loss as didn’t pick up hay in a reasonable time
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Passing of Risk Passage of Risk determines who is responsible for the loss – prior to delivery, during transit or inspection, or afer delivery Agreement of the Parties CISG allows parties to allocate risk among themselves CISG does not define any terms, may use domestic terms or international terms Commonly used INCOTERMS (FOB, CIF)
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Passing of Risk (cont’d) Means of Delivery- by carrier or by seller Goods transported by carrier – CISG distinguishes type of carrier contract Shipment contracts Transshipment contracts In-Transit contracts Destination contracts Regardless of contract used, risk of loss will not pass until the goods are clearly “identified” by markings, shipping documents, notice given to the buyer or otherwise
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Passing of Risk (cont’d) Means of Delivery - Goods transported by carrier (cont’d) Shipment contracts Seller required to deliver the goods to a carrier for shipment and does not require the seller to deliver them to a particular place, the risk of loss passes when the goods are handed over to the first carrier FCA Paris example
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Passing of Risk (cont’d) Means of Delivery - Goods transported by carrier (cont’d) Transshipment contracts Seller required to deliver the goods to a carrier at a named place, carrier will then carry the goods to the buyer, risk of loss passes to the buyer when the goods are handed over to carrier at the first place Example FAS M/V Ocean Trader
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Passing of Risk (cont’d) Means of Delivery - Goods transported by carrier (cont’d) In-Transit contracts
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