What occurs when good and services are damaged in shipment under UCC rules OR no delivery terms are specified?

When goods and services are damaged during shipment and no specific delivery terms have been established, the buyer assumes responsibility for the damages. Under UCC provisions, particularly in the absence of clear terms regarding risk of loss, the burden shifts to the buyer when the seller has tendered the goods in a condition suitable for delivery. This means that once the seller has delivered the goods to a carrier for shipment, the risks involved, including damage during transport, generally fall upon the buyer.

This highlights the principle of risk allocation in sales contracts, where it's important for both parties to clearly define delivery terms to avoid ambiguity about who bears the risk at different stages of the transaction. By understanding this provision, one can appreciate the necessity of specifying terms in contracts to delineate responsibilities and mitigate potential disputes regarding damages during shipping.