This rule has two critical points, because risk passes and costs are
transferred at different places. The parties are well advised to identify as
precisely as possible in the contract both the place of delivery, where the
risk passes to the buyer, and the named place of destination to which the
seller must contract for the carriage. If several carriers are used for the
carriage to the agreed destination and the parties do not agree on a
specific point of delivery, the default position is that risk passes when the
goods have been delivered to the first carrier at a point entirely of the
seller’s choosing and over which the buyer has no control. Should the
parties wish the risk to pass at a later stage (e.g., at an ocean port or
airport), they need to specify this in their contract of sale.