| Commentary

388 Retention of title generally

| Commentary

3: RETENTION OF TITLE

388 Retention of title generally

Retention of title clauses are used by companies, and their distributors, to retain ownership (or title) in items of product even after they have been delivered to distributors or customers, until certain conditions contained in the contract of sale have been fulfilled. Parties to a contract are entitled to decide when title in goods should pass, and their intention is construed in accordance with the contract, which may provide the express right to retain title in goods after delivery.

The usual aim of retention of title clauses in distribution agreements is to ensure

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