RISK CONDITIONS Sample Clauses

The "Risk Conditions" clause defines the specific circumstances under which risk or liability for loss, damage, or injury is allocated between the parties to a contract. Typically, this clause outlines when the risk transfers from one party to another, such as upon delivery of goods, completion of services, or at a specified milestone. For example, in a sales agreement, the seller may bear the risk until the goods are delivered to the buyer’s premises, after which the buyer assumes responsibility. The core function of this clause is to clearly allocate risk, thereby reducing disputes and ensuring both parties understand their responsibilities in the event of unforeseen incidents.