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An examination of the passing of risk under the CISG and in South African law
 

An examination of the passing of risk under the CISG and in South African law

Kholofelo Zandile Ofentse Mogweng
LLM, University of Johannesburg
2025
:
https://hdl.handle.net/10210/520117
This dissertation undertakes a comparative examination of the passing of risk in contracts of sale under the United Nations Convention on Contracts for the International Sale of Goods (CISG) and South African law. The allocation of risk, determining which party bears the financial consequences of loss or damage to goods, is a pivotal issue in international trade, directly influencing certainty, insurance arrangements, and commercial outcomes. The CISG, through Articles 66–70, provides a harmonised and context-sensitive framework that links risk transfer to delivery modalities, conformity obligations, and exceptions for seller misconduct. In contrast, South African law adheres to the perfecta doctrine, whereby risk passes once the contract is unconditional, the goods are ascertained, and the price is determined, often before delivery. This divergence creates practical challenges for South African traders engaged in cross-border commerce, particularly in the absence of an express choice of law. By analysing doctrinal foundations, case law, and commercial realities, the study highlights the CISG’s superior capacity to promote predictability and fairness in international transactions. The dissertation concludes that South Africa’s non-accession to the CISG undermines its competitiveness in global trade and recommends accession as a means of harmonising domestic law with international standards, reducing transactional uncertainty, and enhancing the protection of South African traders in the global marketplace.

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