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(1) If the contract of sale involves carriage of the goods and the seller is not bound to hand them over at a particular place, the risk passes to the buyer when the goods are handed over to the first carrier for transmission to the buyer in accordance with the contract of sale. If the seller is bound to hand the goods over to a carrier at a particular place, the risk does not pass to the buyer until the goods are handed over to the carrier at that place. The fact that the seller is authorized to retain documents controlling the disposition of the goods does not affect the passage of the risk.

(2) Nevertheless, the risk does not pass to the buyer until the goods are clearly identified to the contract, whether by markings on the goods, by shipping documents, by notice given to the buyer or otherwise.

Number Issue # Cases
1 Passing of risk in sales with carriage 2
1.1 Upon handing over goods to first carrier for transmission to buyer 10
1.2 Upon handing goods over to carrier at particular place 1
1.3 Upon identification of unascertained goods to contract
2 Seller's possession of documents controlling disposition of goods
2.1 Not relevant for purposes of passing of risk 1
3 Contractual provision as to passing of risk 1
3.1 Incoterms 8
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