SECTION 1: SALE OF GOODS The Seller sells, transfers and delivers to the Buyer on or before ____3.1 Delivery of the Goods to the Buyer is made on or before the date. A sales contract is a form proving that ownership of an item has been transferred from one party to another. It can be used as part of a sales contract to prove that the goods have officially changed ownership. The risk of loss is a concept that determines which party must bear the risk of damage to the goods after the conclusion of the sale, but before delivery. If the seller bears the risk of loss, he must send another shipment of goods to the buyer or pay damages to the buyer if the goods are damaged before delivery. If the buyer bears the risk of loss, the buyer must pay for the goods, even if they are damaged during shipment.