1. Chapter 5 : Passing of Risk
we will focus only on the ROL between the seller & buyer.
Who is responsible for any loss or damage that may occur to the goods after the K is formed?
Study question #15 (p:45)
Seller K Buyer
(U.S.A) (Cambodia)
Who is responsible?
Who take the risk of loss? Seller or Buyer?
The party that takes ROL will responsible.
2018/11/27
prepared by Leng kimhok

2. prepared by Leng kimhok
1- When does the ROL pass from seller to buyer?
Under Art38 of D#38: The seller bears the ROL until the goods are delivered, unless the K provide otherwise.
Under Art552 & 416 of CC:
Art 308 of CC
Under Art 69 of CISG, the ROL pass from S to B:
When the goods are delivered to the buyer.
( when the buyer gets the goods).
When the seller makes goods available to the buyer. (seller must notify buyer and buyer does not accept delivery in reasonable amount of time.) (seller is liable for damage within his control.)
2018/11/27
prepared by Leng kimhok

3. prepared by Leng kimhok
2- Contract for sale involving a carrier
What is Carrier?
The third party who transport the goods from one place to another, or store the goods in a warehouse for one of the parties.
The liability of a carrier (Art.83 to Art.93 of D#38)
Art 86: Carrier must be responsible for loss or damage to the goods being transported
Art 87: Carrier is not responsible for loss or damage to the goods that caused by force major (typhoon, volcano, earthquake,…).
So, who is responsible?
2018/11/27
prepared by Leng kimhok

4. prepared by Leng kimhok
Two common Ks involving a carrier: Shipment K and Delivery K
Shipment contract: The ROL can pass from the seller to the buyer when the seller delivers the goods to the carrier.
Condition:
Seller must delivers goods to carrier
Seller provides documents to the carrier.
Seller must notify buyer that goods are with carrier
Study question # 16 (p: 50)
2018/11/27
prepared by Leng kimhok

5. prepared by Leng kimhok
Delivery contract : The seller must deliver goods to the buyer’s destination. (the seller bears the ROL until the goods are given to the buyer by the carrier.)
Study question #17 (p:50)
So, we say:
Shipment K: Buyer has ROL when carrier has goods.
Delivery K: Seller has ROL when carrier has goods.
2018/11/27
prepared by Leng kimhok