risk of loss
Chance of damage
Risk of loss is a legal and commercial term for who bears responsibility when goods are damaged, destroyed, or lost during a transaction.
Before the risk passes to the buyer, the seller absorbs the loss; after it passes, the buyer does—even if they haven't yet taken possession.
The contract specified that risk of loss transferred upon delivery to the carrier.
The concept is central to shipping terms, insurance decisions, and sales agreements.
- caveat emptorWarning to shoppers
- FOBOwnership transfer designation
- title transferLegal ownership reassignment
- liabilityLegal or financial obligation
- inspectionFormal assessment of condition
damages · bill of lading · reinsurance · acceptance · breach of contract · delivery · deductible · insurable interest · force majeure · fiduciary duty · market volatility · skin in the game · high stakes · contract breach · collateral · peril · jeopardy · precarious
- contractsbinding contracts, contract length, lease, clause, contract terms
- bailmentbailment, bailee, bailor, entrustment, safekeeping
- horse salesbill of sale, purchase price, buyer rights, title transfer, horse trade
- sales lawsale, buyer, goods, seller, contract termination
- seller dutieswarranty, guarantee, title transfer, merchantability, delivery
- trade lawtrade law, trade regulations, trade laws, trade treaties, commercial law
risk of losssecurity
Protection from threat
guarantee · safety · certainty · predictability · stability
risk of lossfull coverage
Protection without exclusions
indemnification · insurance · risk mitigation · safeguard · protection