Common use of Transfer of Risks Clause in Contracts

Transfer of Risks. 1. If the Purchaser is an entrepreneur, the risk of accidental loss and accidental destruction of the object of purchase shall pass to the Purchaser upon handover, in the case of a sales shipment upon delivery of the object of purchase to the ship- ping company, freight carrier or other person designated to carry out shipment. Risk shall be transferred on handover even if the Purchaser’s acceptance is delayed. 2. In cases where delivery includes assembly, risk shall be transferred as soon as the equipment is ready to be put into service for the first time or, if there is to be no putting into service, when assembly is complete. If MAN’s performance is damaged or destroyed through force majeure, war, unrest, sabotage or other unavoidable circumstances for which MAN is not responsible after the equipment has been despatched from the plant but before the transfer of risks, MAN shall be entitled to that part of the fee, which equates to the damaged or destroyed performance. 3. From the date of fulfilment, MAN must assume responsibility in accordance with the provisions in section XI. 4. Delivered objects of purchase must be accepted by the Purchaser even if they have inessential defects regardless of the rights specified in section XI.