Risk of Loss: Carrier Cases

For shipment contracts, risk shifts when goods are delivered to the carrier.

Related UCC: Goods & Sales rules

• Warranties: ExpressExpress warranties arise from affirmations, descriptions, or samples that form part of the basis of the bargain.
• Warranties: Implied MerchantabilityMerchantability requires goods be fit for ordinary purposes.
• Warranties: Fitness for Particular PurposeFitness warranties arise when a seller knows buyer’s purpose and reliance.
• Disclaimer of WarrantiesDisclaimers must be conspicuous and, for merchantability, must mention “merchantability.”
• Installment Contracts (UCC)Installment contracts require substantial impairment to justify rejection of an installment.
• Risk of Loss: Noncarrier CasesFor noncarrier sales, risk shifts upon tender of delivery.
• Identified Goods Loss RuleIf identified goods are destroyed without fault before risk passes, the contract is avoided.
• Open Price Terms (UCC)UCC allows open price terms if parties intended to contract and provides a reasonable price standard.

Part of Contracts on Core Legal Rules — foundational MBE-tested principles with primary-source citations.