12.1
When should title pass?
Commonly when the trailer is loaded and leaves your site, or when the buyer accepts the load. If title passes on loading but the buyer can still reject the load later, the contract should say who owns a rejected load and who pays to move it.
12.2
Why does risk matter?
A loaded trailer parked on your lot for a week is a fire load. If risk passes only at the buyer's gate, your insurance carries it until then. Match the clause to where the trailers actually wait, and tell your insurer.
12.3
Sample wording
12.1 Title and risk. Title to and risk of loss of Material pass to Buyer when a loaded trailer is collected from Seller’s premises. A load rejected under section 8 remains Buyer’s responsibility until returned to Seller’s premises.
12.4
What to negotiate
- Pass risk when the buyer collects, or when its trailer is on your site and sealed.
- Make rejected loads the buyer’s responsibility until returned.
Red flags in a draft
Title passing on acceptance at a mill you never see.
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Questions
- Who owns a rejected load?
- Whatever the contract says. Without a clause, rejected loads are a common source of disputes about disposal and freight costs.