ABSTRACT
In the case of a sale of goods the selIer is required to offer the contractualIy agreed upon goods to the buyer and the buyer is required to accept and pay for the goods as provided for in the contract. In the absence of specific contractual clauses to the contrary the purchase price becomes due and payable at the moment the buyer receives physical possession of the goods. I In such cases, a retention of title clause would serve no purpose. If, however, the seller gives the buyer credit for the purchase price by allowing the buyer to pay a part or all of the purchase price at a later date, the situation is different and the purpose of a retention of title clause as a means to secure a credit given to the buyer becomes apparent. If the seller gives possession of the goods to the buyer without a retention of title clause, he relies solely on the creditworthiness of the buyer and his claim for payment gives him only a money cause of action against the buyer. The seller must therefore enforce his claim without any right of preference to the goods he delivered to the buyer. The object of the retention of title clause is to give the seller a preference right in the sold goods to secure the credit he has extended to the buyer until the entire purchase price has been paid or until certain other conditions have been fulfilled.
