FAR and DFARS › FAR Part 46: Quality Assurance › Subpart 46.5
FAR 46.505 Transfer of title and risk of loss.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section explains when title to supplies transfers to the Government and when the contractor stops bearing the risk of loss or damage. Title passes on formal acceptance unless the contract says otherwise, and risk of loss passes based on the delivery terms (f.o.b. origin or destination). It also addresses nonconforming supplies and limits contractor liability for Government negligence.
Applies to: Government contracts for supplies
What it requires
- Bear risk of loss or damage to supplies until it passes to the Government under the applicable rule
- Remain responsible for risk of loss or damage to nonconforming supplies until cure or acceptance
Key terms: formal acceptance · risk of loss · f.o.b. origin · f.o.b. destination · nonconforming supplies
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Title to supplies shall pass to the Government upon formal acceptance, regardless of when or where the Government takes physical possession, unless the contract specifically provides for earlier passage of title.
(b) Unless the contract specifically provides otherwise, risk of loss of or damage to supplies shall remain with the contractor until, and shall pass to the Government upon—
(1) Delivery of the supplies to a carrier if transportation is f.o.b. origin; or
(2) Acceptance by the Government or delivery of the supplies to the Government at the destination specified in the contract, whichever is later, if transportation is f.o.b. destination.
(c) Paragraph (b) above shall not apply to supplies that so fail to conform to contract requirements as to give a right of rejection. The risk of loss of or damage to such nonconforming supplies remains with the contractor until cure or acceptance. After cure or acceptance, paragraph (b) above shall apply.
(d) Under paragraph (b) above, the contractor shall not be liable for loss of or damage to supplies caused by the negligence of officers, agents, or employees of the Government acting within the scope of their employment.
(e) The policy expressed in (a) through (d) above is specified in the clause at 52.246-16, Responsibility for Supplies, which is prescribed in 46.316.
← 46.504 Certificate of conformance. · 46.601 General. →
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.