Under Uniform Commercial Code Article 2, goods are sometimes movable. When goods are moved from seller's location to buyer's location, who bears the risk of loss or damage to goods during transport?
The sales contract can use the term F.O.B. to indicate whether buyer or seller bears this risk.
An Article 2 contract must contain an F.O.B. provision for this risk, and if the provision is missing, the contract is void.
Article 2 encourages local business to write sales contracts, so the buyer bears the risk of loss, overriding any contract F.O.B. provision to the contrary.
Article 2 provides that the party hiring the carrier to transport the goods is the party who will bear this risk, overriding any contract F.O.B. provision.
