GlossaryEN1 min readUpdated: Jun 26, 2026

retention of title clause

A retention of title clause protects the seller by keeping ownership of the goods with the seller until the buyer has paid the purchase price in full.

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://de.wikipedia.org/wiki/Eigentumsvorbehalt

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Logistics Concept

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Definition & Explanation

A retention of title clause protects the seller by keeping ownership of the goods with the seller until the buyer has paid the purchase price in full. This arrangement is common in credit sales and cross-border trade: should the buyer become insolvent before payment, the seller can reclaim the goods rather than rank as an unsecured creditor. It is distinct from a pledge or charge – retention of title defers the transfer of ownership rather than creating a security interest over property already transferred. Exporters must note that the enforceability of such clauses varies considerably across jurisdictions, making legal verification essential in international contracts.

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