When does risk transfer occur when carriage of goods is included in the contract?

Risk transfer in the context of the carriage of goods typically occurs at the time specified in the contract or when the goods are passed to the first carrier. This principle is grounded in commercial law and is crucial for understanding when liability for loss or damage to goods shifts from the seller to the buyer.

When a contract is formed for the sale of goods that require transportation, the terms generally outline specific points at which the risk associated with those goods transfers. When the seller hands over the goods to the first carrier, this action indicates that the seller has fulfilled their obligations concerning delivery, thus transferring the risk to the buyer.

For example, if damages occur after the goods are handed over to the carrier, it is the buyer's responsibility to pursue any claims for those damages, as they bear the risk from that point onward. This approach helps clarify liability and reduces disputes between the seller and buyer regarding who is accountable should the goods be lost or damaged during transit.

In contrast, other options like payment, delivery at the buyer's premises, or the signing of the contract do not shift the risk at that moment. Risk is fundamentally tied to the control and possession of the goods rather than financial transactions or the contractual agreement itself.