Delivery Risk
/ˈdɛlɪvəri rɪsk/
Definitions
- (n.) The risk that goods or documents will not be delivered as agreed, causing potential breach of contract or financial loss.
The contract allocates delivery risk to the seller in case the shipment is delayed.
- (n.) In financial law, the risk that one party fails to deliver a security or asset in a transaction, causing settlement failure.
Clearinghouses manage delivery risk to ensure smooth settlement of trades.
Forms
- delivery risk
- delivery risks
Related terms
See also
Commentary
Delivery risk is often allocated explicitly in contracts to clarify which party bears potential loss from non-delivery.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.