When There Is No Agreement The Risk Of Loss Passes To The Buyer

In setting the transfer of ownership and the risk of loss, the parties often use succinct terminology whose importance must be respected in order for the contract to be useful. These terms include the F.O.B.; F.A.S.; ex-ship; C.I.F.; C.F.; no arrival, no sale; Selling on authorisation Sale or restitution. The use of these conditions in a contract can have a significant impact on the property and the risk of loss. Insurable interest becomes important when the goods are damaged, not least because often neither the seller`s insurance nor the buyer`s insurance want the insured to have an interest in the goods: each party disputes it. The seller retains an insurable interest if he owns the goods or has an interest in the safety of the goods, and the buyer obtains an insurable interest in identifying the existing goods as goods to which the contract relates. A person has an insurable interest in real estate owned or in the possession of the person. On the other hand, the Czech civil code states: “If the buyer takes over the matter by a third party, the risk of damage will persist when he can get rid of the case, but not before the time of execution. The terms of the Czech civil code are: (i) the parties have agreed that the buyer will take over the purchase of a third party, (ii) the buyer can sell the deal and (iii) the benefit is due. It may seem that under this general rule, the due date is not required.

However, the general rules of bond law (s. 1910 and 1962) provide that the creditor (in this case the purchaser) cannot be compelled to accept the benefit before maturity. Each party can insure the goods if there is an insurable interest. The buyer has an insurable interest in identified goods, for example. B by some marking. The seller has an insurable interest as long as he retains ownership or a security interest. When are goods “identified”? There are two ways to identify it. First, a sale cannot be made without a change in the title. You will recall that a sale by the Single Code of Trade (UCC) is defined as “transferring ownership from seller to buyer for a price.” So if there is no transfer of ownership, there is no sale. And there are several consequences that there is no sale, one of which — as far as a distributor is concerned — is that there is no implied market guarantee. (As has already been explained in the previous chapter, an implied guarantee provides that when a trader sells goods, the goods are adapted to the usual use for which those goods are used.) In a rental agreement, the title of course stays with the owner.

“risk of loss,” the one who must pay the risk if the goods are lost or destroyed without fault of one of the parties. It is obvious why this problem is important: buyer contracts to buy a new car for $35,000.