As we live in a physical material world, sale of goods is an important component of running businesses or business transactions. In a sale of goods contract, the transfer of ownership is a watershed moment. Once the ownership transfers, the buyer can resell or use the goods. If the seller is unpaid, he can only claim the price but not the reverting of the ownership. To protect the seller, the General condition of contracts (GCCs) have an ownership retention clause which insists that the ownership would not transfer to the buyer till the seller is fully paid. The chapter explores the scope and implications of the clause.

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Ownership Retention Clause

  • Akhileshwar Pathak

摘要

As we live in a physical material world, sale of goods is an important component of running businesses or business transactions. In a sale of goods contract, the transfer of ownership is a watershed moment. Once the ownership transfers, the buyer can resell or use the goods. If the seller is unpaid, he can only claim the price but not the reverting of the ownership. To protect the seller, the General condition of contracts (GCCs) have an ownership retention clause which insists that the ownership would not transfer to the buyer till the seller is fully paid. The chapter explores the scope and implications of the clause.