which are sold in transit, Art. 68 CISG provides special rules; those cases are not governed by Art. 67 CISG. Art. 67(1), sentence 1, clarifies that the risk passes with the handing over to the first carrier. Thereby, the CISG avoids divergences as to which party bears the risk during transport. The ‘first carrier’ is not an auxiliary person of the seller; Art. 67(1), sentence 1, refers to an independent third person. Where the transport is carried out partly by the seller and partly by a third person, the risk passes with the handing over of the goods to the third person. ‘Handing over’ means the moment that the carrier takes the goods into its custody. Usually, it suffices to deposit the goods alongside the carrier’s ship. However, where the parties have agreed on INCOTERMS, ‘delivery’ is determined by Rule A4 of the particu-lar INCOTERM clause. For example, Rule A4 of the FOB, CFR, and CIF clause provides that the seller has to hand the goods over on board, whereas under a FAS clause, delivery is made by placing the goods alongside ship. Other clauses, avoidance must be applied for in court, and the defendant may be granted time according to circumstances in turn, leave it to the parties to determine the particular place of handing over the goods (EXW, FCA, CPT, CIP), or require delivery ex ship (DES, DDU, DDP) or ex quay (DEQ). 2. Interpretation of contract terms with regard to risk allocation Whether a contract term deals with the passing of risk, or whether it just refers to one party’s duty to adequately insure the goods or to the question of place of delivery, depends on the interpretation of the contract term according to Art. 8 CISG. 67-1
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