If goods are destroyed in transit, can a buyer force the seller to ship another delivery?

What happens when goods are delivered to an employee who is not authorized to receive them?
February 23, 2016
Who bears the loss for specific goods that are destroyed before changing hands?
February 23, 2016

In many purchase and sales agreements, delivery is a key component of the contract. When, how and where delivery will take place is often crucial to the business operations of both the seller and the buyer. However, delivery is also frequently performed by a third party delivery company. Therefore, the question of who takes on the responsibility for a successful delivery is an important consideration when drafting a purchase and sales agreement.

When drafting a purchase and sales agreement it is always best to determine which party will be responsible in cases where the delivery of goods is prevented or delayed. Without a clause assigning the risk of shipment, parties will often need to resort to a lawsuit and argue the issue in court. In practice, the seller is usually responsible for insuring the goods during delivery but in special circumstances the buyer may take on this responsibility instead.

If you are thinking of signing a purchase or sales agreement, please contact our office to set up an appointment to discuss your options.