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The Two Sides of the Title Retention Cla...

Pathak, Akhileshwa...

Case

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

Pathak, Akhileshwar

IIMA-BP0428 | Published February 12, 2019 | 9 pages Case

Collection: Indian Institute of Management, Ahmedabad

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Learning Objectives

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.

Transfer of ownership in a sale contract; Structure and benefits of title retention clauses; Disadvantage of title retention clauses.