Identifying risk transfer in the development of an international sales contract requires knowledge of the provisions of the ICSG and also of the incoterms, as they must be integrated jointly. For this reason, it is of the utmost importance to describe the transfer of risk in sales contracts. Therefore, it is not visible to designate incoterms and CISG with caution in contracts in order to remain in a safer area. CISG and Incoterms are increasingly facing a problem, as CISG negotiates a sales contract in which Incoterms includes transport and not the contract. Incoterms does not regulate the situation in which the loss or damage that occurred after the risk occurred, which is due to the act or omission of the seller in the manner governed by cisg. However, while incoterms are not sufficient to determine risk conditions favourably, the provisions of the ICSG may also be particularly opposed to the seller. Depending on the circumstances, the seller, buyer or supplier may be responsible for the value of the damaged goods. In the absence of a contract related to the sale of goods, a civil judge may determine who is responsible for the damaged goods when an action is filed. In most cases, the drafting of a sales contract has conditions that make it either a supply contract or a destination contract. While a shipment of goods between the seller and the buyer is in transit, it is sometimes possible that the goods will be damaged, destroyed, corrupted or lost.
The probability of the product being damaged or destroyed is called risk of loss. Loss in the sale of goods relates to the value of damaged or destroyed goods. The Free on Board (FOB) contract is used in all types of transportation systems, such as the transportation of goods by rail, road or air, as well as in sales that include transportation methods on marine waterways. The principle of the FOB contract is that ownership and risk are transferred to the buyer, who bears all other costs when the goods cross the ship`s rail. If the goods are lost or damaged within five days of the contract being concluded, the seller bears the costs, as in the contract signed between the parties. But if the goods are damaged after five days and the buyer has not recovered the goods, then the buyer bears the loss.