§ 13. When does the risk pass to the buyer?

The risk (risiko) passes from the seller (selger) to the buyer (kjøper) when the goods are delivered, under the rules in §§ 6-7. If you as the buyer do not collect on time, or do not cooperate as you should, the risk can pass to you anyway, even though you do not physically have the goods.

Kjøpsloven (the Sale of Goods Act)·LOV-1988-05-13-27

Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська

The text of the law (unofficial translation)

(1) The risk passes to the buyer when the item has been delivered as agreed or in accordance with §§ 6 or 7.

(2) If the item is not collected or received at the right time, and this is due to the buyer or circumstances on his side, the risk passes to him when the item has been placed at his disposal and a breach of contract (kontraktbrudd) occurs on his part because he does not take over the item.

(3) If the buyer is to collect the item at a place other than at the seller's, the risk passes when the delivery time (leveringstid) has arrived and the buyer is aware that the item has been placed at his disposal at the place of delivery.

Source: Lovdata — Kjøpsloven (the Sale of Goods Act) § 13

What does this mean?

Three different situations, three rules:

Normal delivery (first paragraph): When the goods have been delivered as agreed, the risk passes. For a collection purchase (hentekjøp): when you have the goods in your hands. For a local delivery purchase (plasskjøp): when they have arrived at your place. For a shipment purchase (sendekjøp): when they have been handed over to the carrier.

You do not collect on time (second paragraph): The seller has made the goods ready, but you do not show up. The risk can then pass to you anyway, as long as it is your fault and you are therefore in breach of contract. The logic: you should not be able to avoid risk by being slow.

Collection at another place (third paragraph): If you were to collect somewhere other than at the seller's (a warehouse, a farm) and you know the goods are ready there, the risk passes when the delivery time arrives, even if you have not been there yet.

Comparison: When does the risk pass?

SituationRisk passes when
Collection purchaseYou collect the goods
Local delivery purchaseThe goods have arrived at your place
Shipment purchaseThe goods are handed over to the carrier
You do not collect on timeAgreed collection date (breach of contract)
Remote warehouse + you have been informedThe delivery time arrives

Examples

Sara buys a used outboard motor from Ola for NOK 18,000. She pays on Friday and arranges to collect it on Sunday. On Sunday she does not come. On Monday the motor is stolen from Ola's garden. Sara has the risk from Sunday, when she should have collected it, because she has not cooperated as agreed (§ 13 second paragraph). She must pay, even though she never gets the motor. Had the theft happened on Saturday (before the agreed collection date), Ola would have had the risk and would have had to pay the money back.

Tom buys a batch of spare parts from a wholesaler in Drammen. They agree that the parts are to be collected from a warehouse in Vestby on a specific date. Tom knows about this. When the date arrives and the parts are ready, the risk passes to Tom, even if he only drives to Vestby the week after and discovers that the warehouse has had a water leak. This is a harsh outcome, which is why it is important to collect on time or to make a specific agreement about risk.

Common mistakes

  1. Thinking the risk moves when you pay: that is not correct
  2. Thinking the risk can stay with the seller no matter how late you collect: wrong
  3. Thinking a "ready for collection" message is enough: the place of delivery and what you know also matter

What should you do?

As a buyer:

As a seller:

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