Okuzeka
Contract & Commercial Law vocabulary · Commercial Agreements

Retention of title

Meaning in contract & commercial law, with examples

nounAdvanced term

In contract & commercial law, retention of title means: A clause in a sale contract stating that the seller keeps ownership of the goods until the buyer has paid for them in full.

In Turkish: mülkiyeti muhafaza kaydı, mülkiyetin saklı tutulması

How it is used

Also called a 'Romalpa clause' in the UK. It protects suppliers if the buyer becomes insolvent before paying. Its effect varies by country; in Turkey, a retention of title agreement is valid only once it is entered in an official register kept by notaries.

Example sentences

  1. Under the retention of title clause, the steel remains our property until the invoice is paid.

  2. The insolvency administrator accepted our retention of title claim and returned the unused stock.

Common collocations

  • retention of title clause
  • reservation of title
  • Romalpa clause
  • title passes
  • supplierA business that provides goods or services to another business, usually under a supply agreement or individual purchase orders.
  • terms and conditionsThe standard rules that a business applies to all its sales or services, usually published on its website, in quotations or on the back of order forms.
  • guaranteeA promise by one person or company, the guarantor, to pay another party's debt or perform its obligations if that party fails to do so.
  • clauseA numbered section of a contract that deals with one specific subject, such as payment, confidentiality or termination.

More terms: Commercial Agreements

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This page explains English vocabulary for learners. It is not legal advice.