When goods are shipped from the seller to the buyer, the risk of loss due to damage or spoilage always rests with the party who held legal title to the goods at the time the loss occurred.

Question

Quizplus · Accepted Answer

The risk of loss depends on the terms of the contract between the buyer and seller, such as FOB shipping point or FOB destination, not solely on who holds the legal title at the time of loss.

When Goods Are Shipped from the Seller to the Buyer