CISG and the Final Frontier: Contracting for the Sale of Goods and the Risk of Loss in Outer Space

Paper number

IAC-08.E8.1.12

Author

Mr. Michael Mineiro, McGill University, Canada

Year

2008

Abstract

Outer space is the next realm of commercial expansion. Soon enough, extensive private commercial transactions will occur within the context of outer space and these transactions will include the sale of goods.
On earth goods may become damaged for a variety of reasons; among them flood, fire, shipwreck, carrier neglect, and theft. In outer-space, the risk of loss to goods becomes even greater. Goods may be damaged by space-debris, radiation, loss of transportation vessel, and a variety of other foreseeable and unforeseeable events. When goods are damaged or lost, the party assuming the risk of loss must deal with costly and draining legal ramifications. If there is no insurance, the party bears the complete loss of the goods. If the party does have insurance, they must press a claim against the insurer, wait for a settlement, and may have the responsibility of salvaging damaged goods. On earth assignment of this risk is extremely important. Given the special environmental conditions of outer space and the potential risks of loss, determining who bears that risk is paramount. 
      This paper raises and answers two questions that relate to contracts for the sale of goods in outer space: (1) Can the United Nations Convention on Contracts for the International Sale of Goods (CISG) be applied to goods under contract that originate from, transit through, or are delivered in outer space? (2) If applicable, do the default provisions on the passing of risk harmonize with the circumstances of outer space? 
      In addition, proposed alternatives to the default CISG provisions on risk of loss in light of the outer space environment and associated risks are given. These proposals are applied to likely scenarios to provide legal practitioners a reference to begin analyzing the complexities of contracting for the sale of goods in outer space. 

Abstract document

IAC-08.E8.1.12.pdf

Manuscript document

IAC-08.E8.1.12.pdf (🔒 authorized access only).

To get the manuscript, please contact IAF Secretariat.