Risk of Loss in Contracts - Assignment Example

On the other hand, the seller must secure a conditioned contract with a third party - insurance companies of the cargo ships – where, under the classification of condition precedent (Mallor, et al., 2012), the monetary amount insured will be collected by the seller in instances that their goods are damaged during transport.

In addition, their bond with the buyer must indicate specific conditions to prevent allegations of breach of contract from the other party if such circumstances occur. Nevertheless, the condition stated by the seller must indicate non-performance of expected duty only in force majeure situations such as bad weather conditions that result in damage of goods during transport thus preventing excuses to non-performance other than what is indicated in the contract (Mallor, et al., 2012).