The risk of accidental destruction of the goods passes from the seller to the buyer at the time when delivery has taken place. The time of delivery is therefore of decisive importance if the goods are delayed or there are defects in the goods.
An agreement between seller and buyer regarding the purchase of an item should therefore always contain a clear indication of how the item is delivered and who bears the risk of the item’s demise.
Local trading, when the buyer lives in the seller’s normal business area.
Collection purchase, here the buyer must pick up the item himself at the seller’s business address and the risk passes to the buyer upon handover.
Delivery purchase, here the seller delivers the goods to the customer and the risk passes from the seller to the buyer upon delivery to the buyer’s address.
Distance trading when the seller must send the item to the buyer.
In distance trading, it is common for the parties to agree on who pays the freight costs and at what point the risk passes from seller to buyer. In the absence of an agreement, the delivery is considered to have taken place when the goods are transferred to the buyer (consumer purchase) or transferred to a foreign carrier (commercial purchase).
In practice, this provision is often deviated from, as the so-called sales clauses, which are standard delivery terms, are usually used.
The Danish Purchase Act contains a description of the importance attached to each clause.
When trading beyond borders, the so-called INCOTERMs contain some international sales clauses, which have the same starting point as the Danish sales clauses, but which are much more comprehensive and more detailed in the description of the individual clause.
|Delivery-conditions||Shipping is paid by||Buyer’s risk begins when|
|EXW / AbFabrik||Buyer||When the item is made available to the buyer (at the seller)|
|FCA / Free carrier||Seller to first carrier Buyer from and including the first carrier||When first carrier takes over the item|
|FAS / Free at ship’s side||Seller to ship side Buyer from and including the ship side||When the item is made available in the port of shipment|
|FOB / Free on board||Seller to the item is on board the ship Buyer from and including shipping||When the item passes the ship’s side in the port of shipment|
|CIF / cost, insurance & shipping||Seller to port os arrival Buyer from ship and home||When the item passes the ship’s side in the port of shipment|
|CPT / Free shipping||Seller to specified destination. Buyer from and including specified destination||When first carrier takes over the item|
|DAF / Delivered to boarder||Seller to specified boarder. Buyer from and including the boarder||When the item is made available at the boarder|
|DDP / Delivered and paid custom||Seller to specified destination. Buyer from and including specified destination||When the item is made available at the specified destination|
In Denmark, they also use:
|Free delivery or franco||Seller to specified destination. (normally the buyers business address)||Once the item has arrived at the buyer|
|Free on the truck or free at the cart||Seller to first carrier Buyer from and including the first carrier||When first carrier takes over the item|