Section XXII. Passing of risk
Art. 51
Loss of or damage to the seeds after the risk has passed to the Buyer does not discharge him from
his obligation to pay the price, unless the loss or damage is due to an act or omission of the Seller.
Art. 52
52.1 If the contract of sale involves carriage of the seeds and the Seller is not bound to hand them
over at a particular place, the risk passes to the Buyer when the seeds 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 seeds over to a carrier at a particular place, the risk does not pass to the Buyer until the
seeds are handed over to the carrier at that place. The fact that the Seller is authorized to retain
documents controlling the disposition of the seeds does not affect the passage of the risk.
52.2 Nevertheless, the risk does not pass to the Buyer until the seeds are clearly identified as being
of the contract, whether by markings on the seed packaging, by shipping documents, by notice given
to the Buyer or otherwise.
Art. 53
53.1 The risk in respect of seeds sold in transit passes to the Buyer from the time of the conclusion
of the contract. However, if the circumstances so indicate, the risk is assumed by the Buyer from the
time the seeds were handed over to the carrier who issued the documents embodying the contract of
carriage.
53.2 Nevertheless, if at the time of the conclusion of the contract of sale the Seller knew or ought to
have known that the seeds had been lost or damaged and did not disclose this to the Buyer, the loss
or damage is at the risk of the Seller.
Art. 54
54.1 In cases not covered by Articles 52
and 53, the risk passes to the Buyer when he takes over
the seeds or, if he does not do so in due time, from the time when the seeds are placed at his
disposal and he commits a breach of contract by failing to take delivery.
54.2 However, if the Buyer is bound to take over the seeds at a place other than a place of business
of the Seller, the risk passes when delivery is due and the Buyer is aware of the fact that the seeds
are placed at his disposal at that place.
54.3 If the contract relates to seeds not yet identified, the seeds are considered not to be placed at
the disposal of the Buyer until they are clearly identified as in the contract.
Art. 55
If the Seller has committed a fundamental breach of contract, Articles 52, 53 and 54 do not impair the
remedies available to the Buyer on account of the breach.
Section XXIII. Expiration of a contract
Art. 56
If within 30 days of default of shipping instructions or default of shipment and neither of the parties
has sought an extension of time under Sections XVIII, XXII of these Rules (except Article 50), the
contract shall be deemed null and void, and neither the Seller nor the Buyer may claim for damages.
Section XXIV. Payment
Art. 57
57.1 Unless otherwise specified in the contract, the payment shall be made net against documents
at first presentation, on the date fixed by or determinable from the contract and/or these Rules without
the need for any request or compliance with any formality on the part of the Seller.
57.2 The Buyer's obligation to pay the price includes taking such steps and complying with such
formalities as may be required under the contract or any laws and regulations to enable payment to
be made.
57.3 The bank transfer costs shall be at the Buyer’s account.
57.4 It shall not be permitted to retain all or part of a payment for any compensation.
57.5 The Seller is entitled to demand full payment and/or sufficient security for payment by the Buyer
before performing, if there is a valid reason to believe that the Buyer will not or cannot fulfill its
obligations correctly and/or in time.
Art. 58
The total payment shall take place when due according to the contract. Every portion of a shipment
shall be paid for separately as soon as it falls due.
Art. 59
59.1 If the Buyer does not settle within three working days from the due date, he shall pay the costs
of collection and an interest charge at an annual rate of 5% higher than the official rate of central bank
interest in the country of the Seller.
59.2 This penalty of 5% is not due if the Buyer can prove that the delay of payment was caused by
circumstances beyond his control.
59.3 If the Buyer fails to fulfill one or more of its obligations or to do so correctly and/or in time: the
Seller's obligations will automatically and immediately be suspended until the Buyer has paid all
amounts due (including payment of any extrajudicial costs).
Art. 60
If the Buyer has not paid for the documents or has not taken delivery of the seeds on arrival or has
declared that he will do neither, he shall be liable for all damages, including the expenses as well as
the loss of profit caused to the Seller due to the immobilization of the seeds.
Art. 61
61.1 If the seeds have been furnished on credit, they remain the property of the Seller as long as the
invoice remains unpaid.
61.2 As soon as the date of payment has passed the Seller has the right to take back the seeds
from the Buyer at Buyer’s costs. As long as the seeds are unpaid, the payments of the subsequent
sales made by the Buyer are automatically assigned to the Seller up to the amount of unpaid invoice.
61.3 The Buyer is not permitted to create any other right with regard to the seeds.
Art. 62
62.1 If the circumstances indicate that the Buyer does not intend to pay or is unable to pay, the
Seller shall have the right to seek recovery of the outstanding debt either by (i) proceedings brought in
a competent court of law, without having recourse to arbitration as provided for in the present Rules;
or (ii) an expedited arbitration procedure as provided for in Article 21 of the ISF Arbitration Procedure
Rules.
62.2 If the Buyer is liquidated, declared bankrupt or granted a suspension of payments, the Buyer’s
payment obligations will fall due immediately and the Seller will be entitled to suspend the further
performance of the agreement or to declare the contract and the possible other running contracts
terminated without prejudice to the Seller’s right to claim damages.
62.3 If payment in installments has been agreed, the entire amount will fall due immediately without
notice of default being required in the event of late payment of an installment.