With regard to the first legal issue, because no agreement was made between the parties either as prior verbal agreements in interpreting the contract and upon writing of the contract, and on the use of any trade terms regarding the delivery of goods and on the passage of risk, Articles 31, 32 and 67of the United Nations Convention on Contracts for the International Sale of Goods (CISG) applies. According to Article 31, which outlines the obligations of the seller:
Thus, Mellow, upon delivering the wine to S.S. Minnow for delivery to Ambrosia and identifying it as belonging to Tippler with the appropriate shipping documents and markings has concluded his end of the transaction and the risk, as outlined in Article 67 stating that:
(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. (Article 67),
has passed to Tippler. ...