Risk
The potential danger that threatens to harm or destroy an object, event, or person.
A risk that is specified in an insurance policy is a contingency which might or might not occur. The policy promises to reimburse the person who suffers a loss resulting from the risk for the amount of damage done up to the financial limits of the policy.
In sales transactions, the contract and the UNIFORM COMMERCIAL CODE (UCC) determine who bears responsibility for the risk of loss of the merchandise until the buyer takes possession of the goods.
User Comments Add a comment…