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Gatekeeper Contract and Vendor Management Glossary

Search common contracting language and take a deeper dive to discover what each means

Glossary > R

Risk of Loss

Allocation of responsibility for covering the Risk of damage to or loss of goods being transported long distances after a sale has been completed, but before delivery has occurred.

If the seller bears risk of loss during transport, the seller has a responsibility to provide substitute goods should the goods get lost or destroyed in transit.

If the buyer bears risk of loss, the buyer generally must pay for the goods, even though they never arrive.