chapter  22
18 Pages

RISK AND IMPOSSIBILITY

In the case of sales,5 the general assumption of the common law is that any risk of loss or chance of gain accrued to the owner,2 and thus depended on the passing of property.6 This rule is embodied in s 20(1) of the SGA, which provides that, unless otherwise agreed (see para 22.02):

‘the goods remain at the seller’s risk until the property therein is transferred to the buyer, but when the property therein is transferred to the buyer, the goods are at the buyer’s risk whether delivery has been made or not’.