Risk Allocation In International, European, And Turkish Business Law

Abstract

There are differences in risk allocation in agreements under the civil law and common law systems. However, similar case law on overseas sales in international business law remain apparent. Therefore, INCOTERMS has a significant impact in this regard. In addition, this effect is sometimes seen in determining the ownership rights as well. The question here is how can the same result from the viewpoint of the passing of risk and property be obtained for all parties in international business law. In this study, the Author used a comparative method by comparing the French, German, Turkish, and English laws, and the United Nations Convention on Contracts for the International Sale of Goods on risk allocation in the sale of goods. Also, case laws were analyzed and compared to find out the main differences in practice. In addition, the effects of the use or absence of INCOTERMS in practice were discussed. As a result, it is better to utilize the Free on Board; and Cost, Insurance and Freight INCOTERMS, as well as the jurisdiction clauses in their contracts for business parties to reach the same result in terms of the passing of risk and property.