The Two Sides of the Title Retention Clauses: The Caterpillar Case

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Abstract

Contracts term of commercial sale of goods have a ‘title retention clause’, preventing the transfer of ownership till the seller is fully paid. The unpaid seller gets the right to repossess the goods from the buyer. 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 United Kingdom Court of Appeal judgment in the Caterpillar Case brings out the effects of the contradictions of a title retention clause qualified by the right of the buyer to use or sub-sell.

Additional Information

Product Type Case
Reference No. BP0428
Title The Two Sides of the Title Retention Clauses: The Caterpillar Case
Pages 9
Published on Feb 12, 2019
Year of Event 2010
Authors Pathak, Akhileshwar;
Area Strategy (STR)
Discipline Public Policy and Law
Learning Objective Transfer of ownership in a sale contract. Structure and benefits of title retention clauses. Disadvantage of title retention clauses.
Keywords Unpaid sellers; Transfer of Ownership; Sale of goods; Title Retention Clause
Country United Kingdom
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