ABSTRACT
Conditional sales in Denmark are, in large measure, regulated by the Danish Credit Agreements Act which, as well as stipulating a number of terms and conditions in respect of credit agreements in general also contains a number of provisions dealing with the validity of retention of title clauses. Under s.6 (1) of the Credit Agreements Act a conditional sale is defined as a purchase on credit in which the parties have agreed that the seller may repossess the delivered object if the buyer fails to fulfil his payment obligation. In terms of scope s.34 (3) of the Credit Agreements Act limits retention of title clauses to one purchase agreement and thereby outlaws overcollateralisation by adding new purchases to the old agreement. Further s.38 limits the amount which may be secured by a retention of title clause to: firstly, the unpaid part of the total debt relating to the goods sold; secondly, interest on payments already due relating to the goods sold; thirdly, necessary costs arising from the repossession of the object including collection charges. Subsequent costs in respect of repairs and maintenance to the object are not covered by the retention of title clause.
