Risk burden rules of sales contracts

Before the delivery of the subject matter, the risk shall be borne by the seller. This is because the seller still owns the ownership of the subject matter before delivery, so he should bear the risk of damage or loss of the subject matter.

After the delivery of the subject matter, the risk shall be borne by the buyer. This is because the buyer has the ownership of the subject matter after delivery and can enjoy the benefits of the subject matter according to the contract, so he should bear the risk of damage or loss of the subject matter.

It should be noted that in some special cases, the risk burden rules may be different. For example, if the subject matter needs to be transported, and the parties have not agreed on the delivery place or the agreement is unclear, according to Article 603 of the General Principles of Civil Law of People's Republic of China (PRC), the risk of damage or loss of the subject matter shall be borne by the buyer from the time the contract is established. In addition, if the seller sells the subject matter delivered by the carrier in transit, unless otherwise agreed by the parties, the risk of damage or loss shall be borne by the buyer from the time the contract is established.