What is a retention of title clause?

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Multiple Choice

What is a retention of title clause?

A retention of title clause is a contract term that keeps legal ownership of the goods with the seller until the buyer has paid for them in full. Even if the goods are delivered and used, the seller remains the owner until payment is received, which helps protect the seller in case of non-payment or insolvency. It’s about who owns the goods, not who pays import duties or whether the contract is for services, and it does not say ownership passes on delivery.

A retention of title clause is a contract term that keeps legal ownership of the goods with the seller until the buyer has paid for them in full. Even if the goods are delivered and used, the seller remains the owner until payment is received, which helps protect the seller in case of non-payment or insolvency. It’s about who owns the goods, not who pays import duties or whether the contract is for services, and it does not say ownership passes on delivery.

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