In a shipment contract, risk of loss does not pass from the seller to the buyer until the buyer receives the goods.

Name: In a shipment contract, risk of loss does not pass from the seller to the buyer until the buyer receives the goods.
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In a shipment contract, both title and risk of loss pass to the buyer when the goods are given to the carrier. Shipment contracts are often designated by the term f.o.b. [the place of shipment]-such as f.o.b. Chicago.

In a Shipment Contract, Risk of Loss Does Not Pass