Understanding Delivery and Passing of Risk

A Course for Professional Buyers

Professional buyers encounter numerous scenarios where understanding the nuances of delivery, passing of risk, insurance, Incoterms 2020, examination after delivery, and notification of non-conformity are crucial in protecting the interests of the buying organization. 

Delivery and Passing of Risk

  • Delivery: This is the process where the seller hands over the goods to a carrier or directly to the buyer, as per the terms of the contract.
  • Passing of Risk: This refers to the point at which the risk of loss or damage to the goods transfers from the seller to the buyer. It's crucial to define this clearly in the contract. The passing of risk typically occurs upon delivery, but this can vary depending on the agreed-upon terms.


In international trade, insuring goods is vital to protect against transportation risks. Insurance coverage should be aligned with the value of the goods and the specific risks involved in transit.

Incoterms 2020

Incoterms (International Commercial Terms) are a set of 11 standardized rules published by the International Chamber of Commerce. They are used globally to define the responsibilities of buyers and sellers in the transportation of goods.

Each term (e.g., FOB, CIF, DDP) clearly delineates the point at which the risk and cost responsibilities shift from the seller to the buyer. For instance, under FOB (Free On Board), the seller is responsible until the goods are loaded onto the shipping vessel, after which the buyer assumes risk.

Understanding these terms is crucial in international procurement as they significantly affect cost calculations and risk management.

Examination After Delivery

Upon receiving the goods, it's imperative for buyers to conduct a thorough examination as soon as possible. This examination is to verify if the goods conform to the contractual specifications and quality standards.

The time frame for this examination should be explicitly stated in the contract, as failure to inspect within this period might result in the buyer losing the right to claim for non-conformity.

Notification of Non-Conformity

If the goods are found to be non-conforming (either in quality, quantity, or specification), the buyer must notify the seller within a specified period, as stipulated in the contract or governed by applicable laws.

This notification should be detailed, specifying the nature of the non-conformity and the expected remedial actions (e.g., replacement, repair, refund).

For professional buyers, especially in the realm of international procurement, a comprehensive understanding of these elements is crucial. They not only safeguard the interests of the buying organization but also ensure smoother transaction processes. By being well-versed in the dynamics of delivery, risk transfer, insurance, Incoterms 2020, and the protocols for examination and notification post-delivery, buyers can navigate complex procurement landscapes more effectively, ensuring the successful acquisition of goods while mitigating potential risks.

Learning targets

Introducing delivery and passing of risk, insurance, Incoterms 2020, examination after delivery and notification of non-conformity.

  • Delivery and the passing of risk – the core of sales law. From a logistics perspective.
  • Insurance – a function of the division of risk.
  • Incoterms 2020 – eleven standard choices for logistic matters in sales law.
  • The buyer’s obligation to examine goods after delivery and to give notice of non-conformities.


    1. Delivery according to CISG including initial comparison with Incoterms 2020.

    1. Introducing the structure and content of Incoterms-2020 rules

    1. GISC and timeframe available to notify lack of conformity and more.

    1. Course Quiz

    1. Summery of the course

    2. Download the Slides shown in the course

About this course

  • €60,00
  • 7 lessons
  • Advanced level - Tactical buyer
  • 73 min
  • Quiz and Certificate


Advokat, LL.D Jon Kihlman

Jon Kihlman has been a member of the Swedish Bar Association since 2005. His dissertation Fel (Non-conformity, primarily in goods), was published in 1999. He has an independent legal practice in Tändstickspalatset on Västra Trädgårdsgatan 15 in Stockholm. Jon Kihlman works with Swedish and international commercial contract law. Within that field, his practice includes drafting, reviews, legal opinions, consultations, educations, writing of books and articles as well as litigation and arbitration (as counsel or arbitrator). The purpose of public procurement is to conclude contracts. Therefore, Jon Kihlman’s practice includes public procurement. Although primarily focused on drafting of what will eventually become such contracts, his work also simplifies the procurement process as such. He represents both purchasing authorities and suppliers in court when a procurement process is challenged.

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International Sales Law for Procurement Professionals by Jon Kihlman

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About Learn How to Source

Learn How to Source is an online platform based in Sweden, offering a range of procurement courses accessible globally. It serves as a community where procurement experts share their knowledge through online courses, designed for various experience levels from introductory to expert. Courses are concise, about 30 minutes each, and cover different aspects of procurement, tailored for different buyer roles. The courses focus on practical knowledge, presented by seasoned professionals, and include quizzes and certificates. They can be accessed from any device, emphasizing microlearning for flexibility and efficiency.