Common use of Transfer of Risk and Title Clause in Contracts

Transfer of Risk and Title. 4.1 Unless the parties agree otherwise, the risk of loss and damage passes to the Buyer at the time of receipt of the Goods. Where an Acceptance Procedure (as defined in section 6.3) is agreed or required, the date of final acceptance by the Buyer will determine the transfer of risk. 4.2 Title to all or the relevant part of the Goods passes to the Buyer on the earlier of (i) payment for such Goods or part thereof; and (ii) delivery of such Goods. Where title to all or any part of the Goods has passed to the Buyer but the Goods remain in the possession of the Supplier, the Supplier shall clearly label the Goods as the property of the Buyer and store them separately from all other goods. The Supplier warrants that when legal title passes to Buyer the Goods shall be free and clear of any liens, claims, security interests and/or other encumbrances.