Risk of Loss
/ˈrɪsk əv lɔs/
Definitions
- (n.) The legal responsibility for loss or damage to goods while they are in transit, storage, or otherwise under custody before ownership passes to another party.
Under the contract, the risk of loss passes to the buyer upon delivery to the carrier.
Forms
- risk of loss
Related terms
See also
Commentary
The risk of loss is often allocated by contract terms and can depend on the delivery terms (e.g., CIF, FOB); clear drafting on when risk passes is crucial to avoid disputes.
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.