THE NATURE OF TRANSFER OF RISK IN SALE OF GOODS CONTRACTS: A CRITICAL ANALYSIS. Enakireru Eric Omo * and Aigbe Irene Airen ** Abstract. The transfer of risk in the contract of sale is a question of great practical significance because of its potential for harsh consequences that has intrigued numerous jurists, judges and practitioners since the Roman Period. As a consequence of attracting so much attention, different theories about it have been developed and it is clear that there is more than one approach to the problem. This article critically examines the nature of transfer of risk in sale of goods contract with particular focus on the provisions of sections 20, 6, 7, 31, 32 and 33 of Sale of Goods Act of 1979, it also briefly discusses the provisions of other International Trade Laws. Legal conclusion shall be drawn based on our analysis and recommendation made based on empirical facts deduced from varied legal systems. The article recommends that to avoid confusion and conflict on the transfer of risk in sale of goods contracts of international dimension, INCOTERMS should be used by the contracting parties. For domestic trade disputes, the amended version of the Sale of Goods Act of 1979 may be adopted to clarify the position of the contracting parties regarding transfer of risk but this should only be an interim measure pending the enactment of a contemporary fit-for-purpose Sale of Goods Act. 1. Introduction: The rules on passing of risk answer the question of whether the buyer is obliged to pay the price for the good even if they have been accidentally lost or damaged or whether the seller is entitled to claim their price. Because of its harsh and sometimes unfair consequences, passing of risk forms a subject, which the parties specifically refer to in their contract in an attempt to avoid confusion and possible litigation. In some rare cases where there are no previous arrangements, national laws or international convections regulating the matter will apply. In 1936 the International Chamber of Commerce (ICC) published a set of rules that define responsibilities for the delivery of goods under sales contracts. These rules are referred to as International Commercial Terms (INCOTERMS) and are recognised worldwide in international contracts for the sale of goods. 1 Incoterms are commonly used in international freight; shippers use them to spell out who is responsible for the arrangement and payment of shipping, insurance and customs duties. The main goal of incoterms is to reduce confrontation and misunderstandings between traders and thereby, minimize trade disputes and litigation. Since their establishment in 1936, the Incoterms have been developing and improving with each update of the rules. The process of review of Incoterms takes place every 10 years and includes a real attempt by the drafter to expand that applicability of the rules beyond their traditional realm of international sales contracts to include domestic sale contracts. The latest set of rules was published in 2010 and remains in effect to date although the ICC has announced preparation for publication of Incoterms 2020. * * Eric Omo Enakireru, B.L, PhD. Lecturer, Delta State Polytechnic, Otefe- Oghara.E-mail: ericomo61@yahoo.com , 08050617977, 07062041722. ** ** Irene Airen Aigbe, B.A (Hons), MBA, LL. B (Hons), LL.M, B.L (Hons) Lecturer, Department of Business Law, Faculty of Law, University of Benin. Email: Irene.aigbe@uniben.edu or irene _aigbe@yahoo.com Telephone 08023271876, 07055744758. 1 The major incoterms recognized world over are: EXW FCA CPT CIP DAT DDP, FAS, FOB CFR and CIF.