GlossaryEN1 min readUpdated: Jun 22, 2026

Transfer of liability

Goods arrive at the destination port, the buyer takes delivery – and at that precise moment the seller's responsibility for loss or damage ends.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://www.it-recht-kanzlei.de/haftungsuebergang-transportschaeden.html

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Definition & Explanation

Goods arrive at the destination port, the buyer takes delivery – and at that precise moment the seller's responsibility for loss or damage ends. The transfer of liability is the contractually defined point in time or place at which legal responsibility for transported goods passes from one party to another. In international trade, Incoterms rules govern this transition: terms such as FOB or CIF specify exactly from which stage of the transport chain the buyer bears the risk of loss or damage. Freight forwarders and cargo underwriters rely on these boundaries to allocate claims correctly and close potential coverage gaps. Without a clear contractual agreement, costly disputes over who must compensate for transport damage are a common outcome.

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Transfer of liability

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Related Terms

Transfer costs

Customs transfer price alignment

Incoterms Title Transfer

Transfer of Risk

Incoterms® Risk Transfer Points

Interline Cargo Transfer Points

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