[Direct answer]In the Beijing area, the conclusion is that the buyer usually bears the risk of loss or damage to the goods from the moment the contract is established. According to Article 606 of the Civil Code of the People's Republic of China, if the seller sells the goods in transit entrusted to the carrier for transportation, unless otherwise agreed by the parties, the risk of loss or damage to the goods shall be borne by the buyer from the moment the contract is established. This is the so-called risk rule of goods in transit: when the goods are already in transit, the subject matter of the transaction has already left the seller's actual control at the time of contracting, so the risk is transferred accordingly. The parties may allocate the risk differently through the contract and cover it with cargo transportation insurance. If the seller has a better understanding of the condition of the goods in transit, it is advisable to truthfully disclose the transportation and status information of the goods in the contract, and clearly specify the time point of risk transfer and insurance arrangements to reduce disputes.

1. Problem background and typical scenarios

Cargo in transit, which refers to goods that have been handed over to the carrier and are still in the process of transportation, is a common transaction in trade. Typical scenarios include: goods being resold during maritime or land transportation, cargo damage occurring during transportation; the buyer and seller failing to agree on risk clauses, and each blaming the other for the cargo damage; the buyer believing that delivery only occurs upon receipt of the goods, and not anticipating that the risk has already transferred; and uninsured losses that are difficult to compensate for. When the Beijing District Court handles such cases, it usually determines the point of risk transfer based on legal provisions and contractual agreements, and allocates losses in accordance with the carrier's liability and insurance compensation.

II. Key points of contention

First, when does the risk of the uninsured goods transfer? Second, how should the contract be applied when there are other provisions? Third, the seller's obligation to disclose the condition of the goods in transit. Fourth, the relationship between the transfer of risk and the transfer of ownership. Fifth, how do the carrier's liability and insurance compensation interface? Sixth, the validity and performance of the contract when the goods have actually been damaged. Seventh, the rules of interpretation when the agreement is unclear. These issues determine who should bear the risk.

III. Professional analysis by Henglue Law Firm

Based on Henglu Law Firm's practical experience in handling sales contracts and transportation disputes, such issues should focus on four key points. Firstly, the general rule: According to Article 606 of the Civil Code of the People's Republic of China, if the seller entrusts the carrier to transport the goods in transit, unless otherwise agreed by the parties, the risk shall be borne by the buyer from the time the contract is concluded. Secondly, priority of agreement: The parties may specify the time of risk transfer, insurance liability, and claim arrangements in the contract. Unless the agreement violates mandatory provisions of law, the parties shall abide by their agreement. Thirdly, disclosure obligation: The seller has the obligation to truthfully inform the buyer of the transportation status and known risks of the goods in transit. Concealing important facts may constitute a breach of contract and affect the allocation of risks. Fourthly, liability connection: The buyer's assumption of risk does not preclude its right to claim compensation from the carrier according to the transportation contract, nor does it affect the right to apply for insurance compensation, but duplication of compensation should be avoided. Fifthly, performance handling: If the goods have been actually damaged or lost before the contract is concluded, it involves whether the contract can be performed and the allocation of responsibilities, which needs to be determined based on whether the parties were aware of the situation and whether there was any negligence. Sixthly, evidence points: Transportation documents, bills of lading or waybills, insurance contracts, and cargo damage inspection reports are key to determining the time of risk and the scope of losses, and should be fixed in a timely manner.

IV. Practical suggestions and legal basis

Practical suggestions: First, the contract should clearly stipulate the transfer of risk and insurance liability for goods in transit; Second, the seller should truthfully disclose the transportation and condition information of the goods; Third, the buyer should verify the transportation progress, the carrier's reputation, and the condition of the goods before signing the contract; Fourth, it is reasonable to purchase cargo transportation insurance to cover major risks; Fifth, if the goods are damaged, fix the transportation documents and inspection reports in time and claim against the carrier or insurer; Sixth, if there are unclear provisions, the burden of risk shall be determined in accordance with the law and the remedial path shall be reserved. For more information, please refer to the platform's services.Business and contract disputes in enterprises、Creditor's rights and debts, and enforcement、\nFinancial capital and cross-border transactions involving foreign entities.、Real estate transactions and construction projectsAndSpecial servicesLegal basis: Article 606 of the Civil Code of the People's Republic of China (effective from January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, if the seller sells goods in transit, the risk is usually borne by the buyer from the moment the contract is concluded. Secondly, the parties may separately agree on the point of risk transfer and insurance arrangements, with the agreement taking precedence. Thirdly, the seller has an obligation to truthfully inform the buyer about the condition of the goods in transit, and may be held liable for concealment. Fourthly, the buyer's assumption of risk does not affect its right to claim compensation from the carrier or insurer. Fifthly, duplicate compensation is not allowed, and the compensation and indemnity should be interconnected. Sixthly, the contract should clearly stipulate the risk and insurance clauses to avoid disputes arising afterwards. Seventhly, transport documents and inspections of the damaged goods are key evidence and should be fixed at the earliest opportunity.

VI. Frequently Asked Questions

Q1: Who bears the risk for damage to goods in transit?

It is usually borne by the buyer. According to Article 606 of the Civil Code of the People's Republic of China, where the seller entrusts the carrier to transport the subject matter in transit, unless otherwise agreed by the parties, the risk shall be borne by the buyer from the time the contract is concluded. After the buyer assumes the risk, he/she may claim against the carrier according to the transport contract or apply for insurance compensation.

Q2: Can we agree that the seller will bear the risks during transit?

Yes. The risk burden of the sale of uninspected goods allows the parties to make separate agreements, and if the agreements do not violate the mandatory provisions of the law, they shall be governed by the agreements. It is recommended to specify in the contract the time point of risk transfer, insurance responsibilities, and claims arrangements. Once the goods are damaged, the parties can handle the matter in accordance with the agreement, thereby reducing disputes and the cost of providing evidence.

Q3: What should I do if the seller conceals the fact that the goods have been damaged?

The seller may be held liable for the corresponding responsibilities. The seller has an obligation to truthfully inform the buyer about the condition of the goods in transit. If the seller conceals important facts known to him and causes losses to the buyer, it may constitute a breach of contract or even fraud. The buyer may claim to terminate the contract or seek compensation according to the contract, and keep records of communication, transportation documents, and inspection evidence. If necessary, the matter can be resolved through litigation.

Q4: I'll bear the risk. Can I claim compensation from the carrier?

Yes. The fact that the risk is borne by the buyer does not mean that the buyer will ultimately bear the loss. The buyer can still claim compensation from the carrier in accordance with the transport contract or apply for insurance compensation. It is necessary to pay attention to the carrier's statutory exemption from liability and the scope of insurance liability, and to avoid receiving duplicate compensation from insurance payouts.

Q5: If there's no agreement on risks, how should the damage to the goods be calculated?

Applicable legal provisions. According to Article 606 of the Civil Code of the People's Republic of China, if no agreement has been made, the risk of damage or loss of goods in transit shall be borne by the buyer from the time the contract is concluded. It is recommended that the subsequent contract include additional provisions on the time of risk transfer and insurance clauses, and to retain evidence of transportation and delivery, which will facilitate claims and evidence-gathering.

The above questions and answers are mainly based on the judicial practice in Beijing. There may be differences in the interpretation of the law in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, so as to avoid missing the statutory time limit. →Business and commercial legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in a timely manner.