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Internationally, the situation is different for contracts of sale, but it still creates many unresolved problems because of ongoing changes in the field of modern commerce.
The passing of risk has been a central issue for practitioners, judges and lawyers dating back to the Roman period and several ideas have been proposed to resolve it.
Furthermore, in international transactions in which contracting parties are situated in different countries and communications are performed via fax, phone, and e-mail, there is a delay between the time of forming the contract and the time the goods are handed over to the buyer.
In this period, there is the opportunity for unfortunate accidents to occur that may have a direct effect on the goods.
Under the SGA, risk transfers to the buyer as soon as he signs the contract and the commodities ship. Chapter three will focus on the other significant categories of contract that have been used more than the ordinary type of sale of goods contract.