The term res perit domino translates to "the thing perishes for the owner." This legal principle indicates that the risk associated with goods passes to the owner when ownership is transferred. Essentially, if the goods are damaged or destroyed after ownership has changed hands, the new owner bears the loss, not the seller.
This principle is primarily used in contract law, especially in transactions involving the sale of goods. It emphasizes the importance of understanding risk transfer in contracts. Users engaging in sales agreements should be aware of this principle as it may impact their responsibilities and liabilities. Legal forms related to sales contracts, purchase agreements, and risk management can be found on platforms like US Legal Forms, which provide templates drafted by attorneys.
Here are a couple of examples of abatement:
Example 1: A buyer purchases a car. After the sale is completed, the car is damaged in an accident. Under the principle of res perit domino, the buyer is responsible for the damage, not the seller.
Example 2: A business sells inventory to another company. If the inventory is lost in a fire after the sale, the purchasing company bears the loss (hypothetical example).
Examples of state differences (not exhaustive):
| State | Variation |
|---|---|
| California | Specific consumer protection laws may affect risk transfer in sales. |
| New York | Contractual language may dictate different risk allocations. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Res ipsa loquitur | A doctrine that infers negligence from the very nature of an accident. | Focuses on negligence rather than ownership and risk transfer. |
| UCC Article 2 | Regulates the sale of goods and includes provisions on risk of loss. | Specifically addresses sales transactions and risk management. |
If you are involved in a transaction where ownership of goods is changing hands, it is crucial to understand the implications of risk transfer. Review your sales contract carefully to see how it addresses risk. If you're unsure, consider using templates from US Legal Forms to create clear agreements. For complex situations, consulting a legal professional is advisable.
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You are responsible for the loss as the new owner, according to res perit domino.