Sale of Goods Act Section 40 — Risk where goods are delivered at distant place

CHAPTER IV PERFORMANCE OF THE CONTRACT

Commercial / Corporate

Summary

Where a seller agrees to deliver goods at their own risk to a place different from where the goods are located at the time of sale, the buyer must still, unless the parties agree otherwise, bear the risk of any deterioration in the goods that is necessarily part of the transit itself. This means that even though the seller takes on the general risk of delivery, the buyer is responsible for natural wear or spoilage that inevitably happens during the journey.

Official Text

Where the seller of goods agrees to deliver them at his own risk at a place other than that where they are when sold, the buyer shall, nevertheless, unless otherwise agreed, take any risk of deterioration in the goods necessarily incident to the course of transit.