How do French and German rules differ on the transfer of risk in a sale?

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Charles Le Brun: Portrait of King Louis XIV — Commercial transaction *Portrait of King Louis XIV*, by Charles Le Brun, c. 1655.

In commercial transactions, the transfer of risk for lost or damaged goods varies significantly between legal systems. While parties are generally free to establish their own terms, national laws provide default rules when no specific agreement is made.1

The primary differences between French and German approaches are as follows:

France: Risk is tied to the transfer of ownership of the goods. As soon as the legal title passes from the seller to the buyer, the risk of loss or damage typically shifts to the buyer.1
Germany: Risk passes at the time of delivery. Regardless of when ownership technically transfers, the seller generally bears the risk until the goods are physically delivered to the buyer.1

These distinctions highlight how different jurisdictions prioritize either the legal status of the property or the physical possession of the goods when assigning liability for accidental loss.1