§ 15. Risk when buying goods in transit
If you buy goods that are already on their way by ship, truck or plane — for example a shipping container on its way from Asia — the risk (risiko) passes to you when the contract is made. But the seller is still responsible for damage he knew or should have known about without saying anything.
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)
If the purchase concerns goods in transit, the risk passes when the contract is concluded, unless the circumstances show that the buyer has assumed the risk from the time when the goods were handed over to the carrier that issued the transport document. The seller in any case bears the risk of loss or damage which he knew or ought to have known of at the time of the purchase, but did not inform the buyer of.
What does this mean?
This section deals with a special situation: the goods are already on their way when the purchase is made. Think of imports — a company buys a container of goods that is already on its way by ship from China. Who bears the risk while it is at sea?
Two rules:
The main rule: The risk passes to the buyer (kjøper) when the contract is made. This means that the moment you agree on the purchase, you as the buyer bear the risk — even if the goods are out at sea.
Exception with a transport document: If the circumstances show it (typically because a transport document (transportdokument) has been issued, such as a bill of lading (konnossement)), the risk may have passed retroactively — to when the carrier (fraktfører) took over the goods. This is common in international trade.
The seller's knowledge: In any case: if the seller (selger) knew or should have known that the goods were damaged before the purchase, and said nothing — the seller bears the risk. You cannot sell a container that is already ruined without saying so.
Example
Eva runs a small company that sells Asian furnishings. She buys a container of furniture from a wholesaler in Singapore while the container is already on its way to Norway by ship. The contract is made on Tuesday. Under § 15, the risk passes to Eva from Tuesday onwards — or possibly retroactively if the transport document indicates so. If the container is damaged on Friday, it is Eva's problem to take up with the insurance. But: if the wholesaler in Singapore knew that the container had developed a leak on Tuesday morning and sold it to Eva without saying so — then he bears the risk for the water damage.
Common mistakes
- Believing the risk only passes when the goods arrive — wrong for purchases of goods in transit
- Forgetting to check the transport document — it can move the risk all the way back to shipment
- As a seller: withholding information about damage — it will still hit you
What should you do?
As a buyer of goods in transit:
- Make sure of the condition of the goods before buying — if possible, arrange an inspection at a transit port
- Take out transport insurance (transportforsikring) from the date of the contract
- Ask to see the transport document before the contract is signed
As a seller:
- Disclose everything you know about the condition of the goods
- Withholding information is a breach of contract (kontraktbrudd)