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About: Risk of loss     Goto   Sponge   NotDistinct   Permalink

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Risk of loss is a term used in the law of contracts to determine which party should bear the burden of risk for damage occurring to goods after the sale has been completed, but before delivery has occurred. Such considerations generally come into play after the contract is formed but before buyer receives goods, something bad happens. Under the Uniform Commercial Code (UCC), there are four risk of loss rules, in order of application: In bankruptcy law, the risk of loss rule under a contract can be abrogated by a secured interest.