risk 1. the possibility of loss or harm occurring. Normally, the risk of accidental destruction lies with the owner.

In respect of GOODS, the position is regulated by the Sale of Goods Act 1979. Unless otherwise agreed, the goods remain at the seller's risk until the property in them is transferred to the buyer, but when the property in them is transferred to the buyer the goods are at the buyer's risk whether delivery has been made or not. This section expresses the maxim res perit domino ('ownership is lost with the thing'), and the 1893 Act represented a change in the common law of Scotland, which was that risk passed as soon as the contract was formed regardless of the fact that property might not have passed by

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TRADITIO. In respect of generic sales, the rule does not apply. The applicable maxim in such cases is genus nunquam perit: i.e. 'no com- modity ceases to exist.' This principle applies even if the seller's stock from which he had intended to fulfil his bargain is accidental- ly destroyed. Goods may be treated as having perished when they are so damaged that they no longer answer to the description under which they were sold: Nickoll & Knight v. Ashton, Edridge & Co. [1901] 2 KB 126. It is however, open to the parties to make their own agree- ment as to risk. The time of destruction of the goods is important. Where there is a contract for the sale of SPECIFIC GOODS, and the goods, without the knowledge of the seller, have perished at the time when the contract is made, the contract is VOID. Where there is an AGREEMENT TO SELL SPECIFIC GOODS and subsequently the goods, with- out any fault on the part of the seller or buyer, perish before the risk passes to the buyer, the agreement is avoided. Where delivery has been delayed through the fault of either buyer or seller, the goods are at risk of the party at fault as regards any loss that might not have occurred but for such fault. Fault for these purposes is defined as a wrongful act or default. 'Default' means a lack of reasonable care in the circumstances.

2. in the law of insurance, the danger, peril or event insured against.

• incorporeal property
• incriminate
• incumbrance
• indebitatus assumpsit
• indebitum solutum
• indemnity
• indenture
• independent contractor
• independent means
• indictable offence
• indictment
• indorsement
• inducing breach of contract
• industrial dispute
• industrial injury benefit
• industrial tribunal
• in extenso
• infeftment
• in flagrante delicto
• information
• inheritance tax
• inhibition
• initial writ
• injunction
• injuria