GlossaryEN1 min readUpdated: Jun 8, 2026

Transfer of liability

Imagine goods arriving at the destination port and the buyer taking possession – from that moment forward, he bears the risk of damage or loss.

Last updated: 8 June 2026Published: 19 June 2025

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

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Imagine goods arriving at the destination port and the buyer taking possession – from that moment forward, he bears the risk of damage or loss. The transfer of liability is the contractually agreed moment or location at which legal responsibility for the transported goods shifts from the shipper to the recipient or another party. In practice, Incoterms definitions (FOB, CIF, DDP, etc.) largely govern this transfer: they specify precisely who bears the cost of damage, loss, and transport delays from which point onward. Freight forwarders and insurance underwriters rely on these boundaries to allocate liability claims correctly and price coverage accordingly. Without clear contractual terms, disputes arise over who ultimately pays for transport damage.

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Transfer of liability

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Related Terms

Liquefied Gas Transfer Pumps for Ship-to-Ship Transfer

Incoterms transfer of possession

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Lunar Cargo Transfer Technologies (Space Logistics)

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Incoterms 2020 Simulator: Who bears costs & risk?

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