Liability for loss or damages

Where the thing transferred by operation of the contract is damaged or lost while in possession of the transferor, the risk is on account of the transferee, except where the thing is deteriorated or lost on account of fault or negligence of the transferor. § 1 - The loss can take place:- 1. Where the thing perishes; 2. Where the thing is put out of commerce; 3. Where the thing disappears in such a manner that it is not possible to recover it, or its whereabouts are not known. § 2 - There is fault or negligence when the obligor does some acts which are adverse to the conservation of the thing. § 3 - As to whether there is fault or negligence it depends upon the prudent discretion of the Court, according to the circumstances of the case, of the contract and of the persons.