Absent an agreement to the contrary, the seller bears the risk of damage before goods pass to the buyer.

Question

Quizplus · Accepted Answer

This is because under the default rule of the Uniform Commercial Code (UCC), which governs sales transactions in the United States, the risk of loss is on the seller until the buyer takes physical possession of the goods. However, parties can agree to a different allocation of risk in their contract.

Absent an Agreement to the Contrary, the Seller Bears the Risk