Petroleum Business Review
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Role Analysis of Contract Aim in INCOTERMS 2020 as Main Cause of Transfer of Risks of Petroleum and Refinery Equipment

Document Type : Original Article

Authors

Mohammad Reza Mansour Esfahani 1
Amir Abbas Bozorgmehr 2

1 PhD Student in Private Law, Law Department, Azad University of Tehran, North Branch, Tehran, Iran

2 Assistant Professor, Law Department, Azad University of Tehran, North Branch, Tehran, Iran, Email: a.bozorgmehr@iau-tnb.ac.ir

https://doi.org/10.22050/pbr.2019.113670
Abstract
The international chamber of commerce (ICC) created a generally accepted set of terms named INCOTERMS 2020 which provides that the risk of the loss of or damage to the goods passes from the seller to the buyer when the seller has fulfilled his obligation to deliver the goods. However, this rule is based on a false base, which causes numerous exceptions where the goods are delivered, but the risk remains on behalf of the seller. In this paper, we will prove that there is only one unexceptional factor which indicates whether the risk has passed through the other side or still remains with it; that factor is reaching the aim. The aim has a composite nature, and preparing the last part of that nature allows reaching the goal; this is the main reason for transferring the risk of the thing. Thus, when the buyer’s aim from the contract is fulfilled, the risk of the goods will be transferred to him or her, and when the seller’s aim from the contract is met, the risk of the price will be transferred to him or her. Generally, the aim or the cause of the obligations should be defined as the acquirement of the property and the possession of the thing which is peaceful and useful for enjoying with security. Hence, each term will be separately analyzed by the theory of the cause of the obligations in the civil law of France, and we will name this totally new theory which defines the goal as a composite nature the theory of the spirit level of the risk.




The international chamber of commerce (ICC) created a generally accepted set of terms named INCOTERMS 2020 which provides that the risk of the loss of or damage to the goods passes from the seller to the buyer when the seller has fulfilled his obligation to deliver the goods. However, this rule is based on a false base, which causes numerous exceptions where the goods are delivered, but the risk remains on behalf of the seller. In this paper, we will prove that there is only one unexceptional factor which indicates whether the risk has passed through the other side or still remains with it; that factor is reaching the aim. The aim has a composite nature, and preparing the last part of that nature allows reaching the goal; this is the main reason for transferring the risk of the thing. Thus, when the buyer’s aim from the contract is fulfilled, the risk of the goods will be transferred to him or her, and when the seller’s aim from the contract is met, the risk of the price will be transferred to him or her. Generally, the aim or the cause of the obligations should be defined as the acquirement of the property and the possession of the thing which is peaceful and useful for enjoying with security. Hence, each term will be separately analyzed by the theory of the cause of the obligations in the civil law of France, and we will name this totally new theory which defines the goal as a composite nature the theory of the spirit level of the risk.




 

Keywords

cause of obligations
petroleum contracts aim
composite nature
spirit level of the risk
aim bubble
Subjects
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Civil Code, 2018, Dalloz, 117 e édition
Code Civil, Lexis Nexis, 2014
Darabpour, Mehrab, The Principles of International Commercial Law, Volume 5
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Katouzian, Nasser, Iranian Civil Law, Specific Contrats, Volume 1, n 279, 282, 293, 294
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  • Receive Date 28 May 2019
  • Revise Date 30 July 2019
  • Accept Date 28 August 2019

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