Proceedings of the 10th International Academic Conference, Vienna

PASSING OF RISK IN CONTRACT OF SALE

BAHADIR DEMIR

Abstract:

Due to social, physical or economical reasons that countries could not meet their requirements by own resources, international trade was appeared. Also with the development of global economy, the borders between world trades were disappeared. Due to effect of more than one national law to a trade relation, confusion causes on the determination of the norms to be applied and problems occur between the parties during determination of norms. Since there is no supranational jurisdiction system is available to take role during the solution phase of problems, national courts become competent judicial authority; thus, they remain incapable of objectivity and area of specialization. In the commercial life where international actors take place, the requirement of international solution mechanism is inevitable. As a result of seeking fulfillment for this need, on 11.04.1980 in trust of United Nations the diplomatic conference was held in Vienna and Convention on Contracts for the International Sale of Goods under common name Vienna Sale of Goods Agreement (“Vienna Sale of Goods Agreement”) was accepted. As of January 2013, 80 state parties are existed to CISG . Austria is one of the first 5 countries who constituted and signed the convention . In Austria, CISG officially become valid on 01.01.1989 and the validation is still continued. Turkey become a party to a convention on 07.07.2010 and agreement become valid as of 01.08.2011. Hereunder CISG Agreement is applied for the sale of good agreements between the parties where their business places are in different countries and upon the condition that, these countries are the contracting states. In addition to this, CISG application area can be performed if attributed the international law rules to a contracting state. The purpose of our study is, to discuss the passing of risk matter which incorporates many problems, in national and international sale of goods agreements within the frame of CISG and Turkish Code of Obligations regularizations. In our study, primarily risk and passing of risk concepts were mentioned in general; then the moment that, damage was devolved, conditions and exceptions were emphasized. At the final section of our study, in sale of goods agreements passing of risk results were discussed and in case of violation of agreement, the status of circumstances was indicated in the point of CISG.

Keywords: Sale of Goods, Passing of Risk, CISG.

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