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New Zealand law explained for everyone

Contract and Commercial Law Act 2017

Sale of goods - Effects of contract - Transfer of property between seller and buyer

148: Risk passes with property unless otherwise agreed

You could also call this:

“When you buy something, you become responsible for it once you own it, unless you agree otherwise”

When you buy something, the risk of it being damaged or lost usually stays with the seller until you become the owner. Once you own it, you take on that risk, even if you haven’t received it yet. This is the default rule, but you and the seller can agree to something different if you want.

If there’s a delay in getting the item to you, and it’s either your fault or the seller’s fault, then whoever caused the delay is responsible for any loss that happens because of that delay.

This rule doesn’t change any responsibilities that you or the seller might have if you’re looking after each other’s stuff temporarily.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844343.

Topics:
Money and consumer rights > Consumer protection Business > Fair trading
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147: Reservation of right of disposal, or

"Seller can keep control of goods until buyer meets certain conditions"

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149: Sale by person who is not owner, or

"When someone sells something they don't own, you might not get to keep it"

Part 3 Sale of goods
Effects of contract: Transfer of property between seller and buyer

148Risk passes with property unless otherwise agreed

  1. Unless otherwise agreed,—

  2. goods remain at the seller’s risk until the property in the goods is transferred to the buyer; but
    1. when the property in the goods is transferred to the buyer, the goods are at the buyer’s risk (whether or not delivery has been made).

      1. However, if delivery has been delayed through the fault of either the buyer or the seller, the goods are at the risk of the party at fault with respect to any loss that might not have occurred but for the fault.

      2. This section does not affect the duties or liabilities of either the seller or the buyer as a bailee of the goods of the other party.

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