How Risk of Loss, FOB Terms, and Drafting Errors Decide Real Disputes Destination vs shipment contracts determine when risk of loss transfers from seller to buyer.Under the New York UCC, shipment contracts are the default unless the contract clearly says otherwise. If goods are damaged in transit, liability often turns on a few words like FOB shipping point or FOB destination. Many disputes happen because parties assume delivery means arrival. It does not. Clear drafting prev