Retention of title clause

A contract clause commonly used in international sale contracts whereby a seller declares his intention to retain title of ownership over the contract goods until payment by buyer is complete. Example of retention of title clause is as follows: It is understood that the Products hereunder remain the property of the Seller, until the Buyer has completed payment completely. Until such point the Products shall be deemed to be a deposit in possession of the Buyer, and the Buyer shall meet all obligations incurred by receiving such deposit, while being entitled to administer the Products with due diligence.

Related entries