Risk of Loss Clauses

Summary

This risk of loss clauses template may be used in a contract for the sale of goods. The various clauses identify which party to the contract bears the risk of loss for damage of goods occurring between the sale and delivery of goods. This template includes practical guidance and drafting notes. The time, place, and method of delivery are specified by the UCC, but may be modified by agreement. Delivery and shipment have an effect on the shift of the risk of loss from the seller to the buyer, as well as the time of the passage of title. The UCC rules may be modified by agreement also. For a full listing of related contract clauses, see General Commercial Contract Clause Resource Kit. For general information regarding risk of loss, see Shipping Terms and Risk of Loss Allocation.