Risk of Loss or Damages to the Goods in the International Sales Contract

Abstract This chapter examines the allocation and transfer of risk of loss or damage to the goods in international sales contracts under the ICC Incoterms® and the CISG, It explains the concept of ‘price risk’, its contractual and default allocation, and its significance for assessing conformity of goods and determining liability. The chapter analyses how parties may allocate risk explicitly or implicitly, emphasizing the role of Incoterms® 2020 rules and their interaction with the CISG. It explores the CISG’s provisions on risk transfer in contracts involving carriage, goods sold in transit, and other scenarios, highlighting the importance of identification of goods and the effect of buyer delay. Finally, it addresses the impact of fundamental breach on risk allocation, ensuring the buyer’s remedies remain available despite coincidental loss after breach.