WA Who is responsible for the financial loss incurred where a sold item is lost/stolen and the buyer never receives the good/s purchased?

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Blubarb

Active Member
17 April 2017
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1
34
⁠Here is the problem: Person A , the seller, offers for sale on social media a luxury item (eg, watch or jewellery) for sale and Person B, the buyer, agrees to the price which includes shipping to his/her place of residence. Money is transferred to the seller and the item is then shipped by the seller to the buyer. However, during transit, the item is lost or stolen and the buyer doesn't receive the item. My questions are: Who is responsible for the the financial losses incurred by the loss or theft? At what point does the buyer actually own the item, from payment of the money to the seller or on receipt of the item?
 

Tim W

Lawyer
LawTap Verified
28 April 2014
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Are you the buyer or the seller?
Also, much depends on the dollar amount involved.
The law doesn't (much) vary, but whether or not it makes monetary sense
to go to the trouble, can.
 

Tim W

Lawyer
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28 April 2014
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Who arranged transport/ delivery?
What evidence do you have (dockets etc)
that it left your warehouse in a timely way?

Was the item insured while in transit?
If yes, by whom, buyer or seller?

By the way - prepare yourself to give him back his money.
 

Blubarb

Active Member
17 April 2017
11
1
34
Thank you, Tim.

Who arranged transport/ delivery? = Shipping and Insurance paid for by the buyer and the seller arranged transport.

What evidence do you have (dockets etc) that it left your warehouse in a timely way? = Next day transport company picked up from home (Person 2 Person nor B2B)

Was the item insured while in transit? Insured but not sure if the insurance company will pay up or not - if they do, all good, but if they don't for some reason...what then?

If yes, by whom, buyer or seller? Buyer paid for shipping and insurance but arranged by seller

By the way - prepare yourself to give him back his money. Yep. But I am interested in who bears the risk of loss and when is that shifted to the buyer from the seller?
 

Tim W

Lawyer
LawTap Verified
28 April 2014
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Sydney
Whose name is on the delivery/ transport invoice?
That is, who is the carrier's actual customer?
 

Tim W

Lawyer
LawTap Verified
28 April 2014
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Are you (the seller) a business or a private person?