Transfer of Ownership, Risk of Loss or Damage Clause Samples

The "Transfer of Ownership, Risk of Loss or Damage" clause defines when legal ownership of goods passes from the seller to the buyer, and at what point the risk for any loss or damage to those goods shifts as well. Typically, this clause specifies whether ownership and risk transfer at the time of shipment, delivery, or upon full payment, and may reference specific delivery terms such as FOB (Free On Board) or CIF (Cost, Insurance, and Freight). Its core function is to clearly allocate responsibility for the goods during transit, thereby preventing disputes over liability if the goods are lost or damaged before reaching the buyer.