When does the shipment risk transfer to the purchaser for Engel & Volkers deliveries?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) With regard to our deliveries, the place of performance is the place of shipment. Any associated additional costs, which are incurred in the event of any subsequent alterations to the destination at the request of the Purchaser, shall be borne by the Purchaser. The shipment risk shall in all cases be transferred to the Purchaser when the goods are made available at the place of shipment, even insofar as we bear the costs of shipment as a result of a special agreement. Transport insurance, in particular for the shipment of dangerous goods, shall be taken out only at the request and for the account of the Purchaser.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the risk of shipment transfers to the purchaser when the goods are made available at the place of shipment. This condition applies even if Engel & Volkers bears the shipping costs due to a special agreement.
This means that once Engel & Volkers makes the goods available for pickup at the designated shipping location, the purchaser assumes responsibility for any loss or damage that may occur during transit. It is the purchaser's responsibility to ensure the goods are adequately insured during transport, especially for dangerous goods, which require specific transport insurance obtained at the purchaser's request and expense.
For a prospective Engel & Volkers franchisee, this implies a need to carefully coordinate and manage the shipping process to mitigate potential risks. Franchisees should consider arranging for transport insurance to cover any potential losses or damages during shipping, particularly for valuable or sensitive items. Understanding this transfer of risk is crucial for managing costs and liabilities associated with deliveries.