Retention of Title Clause

A Retention of Title Clause specifies that ownership of goods remains with the seller until the buyer pays the full purchase price. It protects the seller’s interest until payment completion.

Retention of Title Clauses ensure that the seller retains ownership in the event of non-payment by the buyer. These clauses appear in sales contracts, securing the seller’s rights. The clause can include terms like the seller’s right to reclaim goods if the buyer does not fulfill payment obligations. This clause is common in international trade, wholesale, and supply chain agreements.

Examples of retention of title clauses:

• Seller retains title until the buyer pays the invoiced amount.
• Goods remain the seller’s property until the buyer settles all dues.
• Seller can repossess goods if the buyer defaults on payment.

Retention of Title Clauses mitigate risks associated with buyer insolvency. These clauses provide legal backing for sellers to recover goods, ensuring financial security.