5.8 Risk of Loss

The rule (Art. 66-70): the risk passes to the buyer when the goods are DELIVERED (the crossing of the risk independent of the property's transfer); the loss after the risk's passage does not discharge the buyer's payment duty — even though the goods are lost (the price still payable). The qualifications: The sale's own rules govern: the Incoterms (Unit 2) or the contract's term fixes the risk's moment — the Convention yields; The fundamental breach's exception: the goods conforming-not, the buyer's rightful avoidance shifts the risk back; The carriage cases: the risk passes on the goods' handover to the first carrier (the over-the- side sales' variations); The B/L world's practice: the documentary sale's risk allocation through the terms (the CIF/ FOB faces of Unit 2).