Article 2 — Sales · Section 2-509
A comprehensive overview of UCC § 2-509, detailing risk of loss in sales transactions.
Source: U.C.C. § 2-509
Unless otherwise agreed, the risk of loss passes to the buyer when the seller has completed their performance with reference to the goods.
UCC § 2-509 governs when the risk of loss for goods transfers from the seller to the buyer. Typically, this occurs once the seller has fulfilled their obligations with regard to the delivery of the goods.
The financial responsibility or liability for loss or damage to goods.
The transfer of possession of goods from the seller to the buyer.
Example 1
A seller ships a package to a buyer who agrees to pick it up from a designated location. The risk of loss transfers to the buyer when the seller notifies them that the package is ready for pickup.
Example 2
A buyer orders merchandise online. When the seller ships the goods, the risk of loss transfers to the buyer upon delivery to the carrier.