The purchaser runs the risk of the loss of a thing sold, though not yet delivered.

Explanation

Once the sale is agreed upon, the risk of loss passes to the buyer even before physical delivery — the buyer's title is complete upon agreement, and the loss falls where the title rests.

Where this applies

• I bought a painting at auction but it was damaged before they shipped it to me — who bears the loss?
• The house I just purchased under contract burned down before closing — am I still on the hook?

See also

• 5.5.1 Let the buyer beware; the buyer ought not to be ignorant that he is purchasing the rights of another.
• 5.5.6 The price stands in the place of the thing sold.