TRANSFEROF RISKS Clause Samples

The "Transfer of Risks" clause defines the point at which the responsibility for loss or damage to goods shifts from the seller to the buyer. Typically, this transfer occurs at a specified stage in the delivery process, such as when goods are handed over to a carrier or upon delivery at the buyer’s premises. For example, if goods are damaged after the risk has transferred, the buyer, not the seller, bears the loss. This clause is essential for clarifying liability and ensuring both parties understand when their obligations regarding the goods begin and end, thereby reducing disputes over damaged or lost items during transit.