Conformity and Passing of Risk under the CISG: “Plants Case” by Bamberg District Court of Germany

7 Baku St. U. L.Rev. 1 (2021)
Article language: English.

Abstract

This article studies “Plants case” heard in October 2006 by Bamberg District Court in Germany and discusses the applicability of the United Nations Convention on Contracts for the International Sales of Goods dated 1980 to this case, the conformity of the goods with the contract under Articles 35-44 and passing of risk to the buyer under Articles 66-70 as well. Specifically, the question that who carries the risk during loading of goods before handing over to the first carrier is answered in accordance with Article 67(1) of the Convention. The article further explores the carrier’s duty to examine goods when it stops before arriving at the destination for unloading other goods and its relation with a buyer’s duty to examine goods. It promotes the points the Court did not take into account with a reference to the Convention and case law. In the Plants case, defining the liability of the parties upon the carriage of goods, including their involvement in the occurrence of the damage to goods has been a disputable issue because the seller had observed the buyer’s instructions to deliver all goods despite the lack of space on the truck. However, this fact and the seller’s notice and warning did not influence the Court’s decision. Hence, the article concludes that unlike the decision of the court, it will not fit in all cases to determine the reasonable time for notification of non-conformity of goods with a sales contract as one month. Furthermore, when the courts apply the Convention, they should be inclined to take into account all details of cases, especially parties’ correspondence that can be read as an acknowledgment of liability.

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