ABSTRACT
Transfer of risk on loading The seller’s obligation to deliver goods of the contract specifications will crystallise not when the goods are actually delivered to the buyer but when they are loaded onto the carrying vessel. Thereafter the ‘risk’ in the goods will be with the buyer, even though constructive possession of and property in the goods will very probably remain with the seller pending payment by the buyer.3 The transfer of risk on loading means that, vis à vis the seller, the buyer accepts the risk of loss or damage to the goods while in transit. So long as the goods match the contract description at the time of loading, the seller will be entitled to its price and will not be liable to the buyer if the goods are damaged between loading and their eventual physical delivery to the buyer. The contract description will specify not only the type, quantity and condition of goods being sold but also a period of time within which they must be loaded.
