Risk of loss

From Conservapedia

Jump to: navigation, search

The risk of loss in a shipment, consignment, loan or other exchange of goods refers to which party must suffer the loss if there is unexpected damage to the goods, as from fire or flooding or some kind of accident.

Usually the risk of loss is governed by an agreement between the parties. In the absence of an agreement with respect to a sale on consignment, the UCC treats it as a "sale or return". The consignee (person with possession) bears the risk of loss, and the consignor's rights against consignee's creditors depend on having filed a UCC financing statement.[1]

References

  1. http://online.sfsu.edu/~rdaniels/2003_120/120%20Week%20eight%202003.html
Personal tools