A sale of goods in which the seller retains title to the goods sold, any products made from them, or the resulting sale proceeds, until the buyer pays for the goods.
A clause included in a contract of sale in which the seller retains the title of goods sold until they have been paid for. Crucial for accountants, it affects stock ownership and requires assessing the commercial substance of transactions.
A title retention clause, commonly known as a Romalpa clause, is a contractual clause ensuring that the seller retains ownership of the goods supplied until the buyer has paid the full purchase price.
