Ownership Retention Terms in Sale Contracts Gone Astray: PST Energy 7 Shipping v.O.w. Bunker Malta Limited

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Abstract

Title retention clause was introduced in sale of goods contracts to prevent the transfer of ownership till the seller was fully paid. Exigencies of businesses have led to introduction of further clauses allowing the buyer to use or sub-sell the goods even before the transfer of ownership. The conflicting provisions as the judgement of the United Kingdom Supreme Court in PST Energy 7 Shipping v.O.W. Bunkjer Malta Limited brings out, changes the very character of the contract. The contract fails to be a contract of sale of goods depriving the parties of the valuable rights.

Additional Information

Product Type Case
Reference No. BP0429
Title Ownership Retention Terms in Sale Contracts Gone Astray: PST Energy 7 Shipping v.O.w. Bunker Malta Limited
Pages 11
Published on Feb 21, 2019
Year of Event 2016
Authors Pathak, Akhileshwar;
Area Strategy (STR)
Discipline Public Policy and Law
Learning Objective Transfer of ownership in a sale contract Strcuture and benefits of title retention clauses Disadvantage of title retention clauses
Keywords Sale Contracts; Transfer of Ownership; Contract Terms; Title Retention Clause
Country United Kingdom
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