Retention of title (also known as reservation of ownership) is a contractual mechanism whereby the seller retains ownership of goods until the purchase price has been fully paid. It is a widely used tool in both domestic and international trade to mitigate credit risk and protect sellers against buyer default.Although the concept of retention of title is broadly recognised, its legal treatment, enforceability, and practical implications*vary significantly between legal systems. These differences are particularly evident in areas such as the recognition of ownership rights, the enforceability of clauses against third parties, and the treatment of goods in the event of the buyer’s insolvency or bankruptcy.This guide provides a practical overview of retention of title clauses and their regulation across multiple jurisdictions, addressing recurring key questions, such as
- How retention of title is regulated under national law.
- The legal status of goods subject to retention of title in bankruptcy proceedings.
- The formal requirements for an enforceable retention of title clause.
- The possibility of including retention of title in framework or supply agreements.
- The registration or security mechanisms available to strengthen the seller’s position.
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