Upon what condition does the risk of loss pass to the Government?

The passing of risk of loss to the Government is contingent upon the delivery of supplies to a carrier or acceptance by the Government. This principle is rooted in contract law and procurement regulations, which stipulate that once goods are delivered to a carrier, or once the Government accepts the supplies, the responsibility for any loss, damage, or destruction of those goods shifts from the seller to the Government.

This arrangement allows for a clearer understanding of liabilities and responsibilities between contracting parties. When the seller has fulfilled their obligation by delivering the goods, the Government assumes the risk associated with those goods, whether they are in transit or upon acceptance. Consequently, it is essential to comprehend that simply making a payment or signing a contract does not confer ownership or risk; those actions do not instantiate the transfer of risk of loss. Similarly, merely inspecting the supplies is not sufficient to transfer risk, as the actual acceptance or delivery to a carrier is what formally completes that transfer.