Eigendomsvoorbehoud

Retention of title is a widely used mechanism under Dutch sales law to protect the seller’s position. It provides that title to the goods passes to the buyer only once the buyer has fulfilled all its obligations, in particular the obligation to pay.

This clause is governed by Article 3:92 of the Dutch Civil Code and prevents the buyer from reselling or encumbering the goods before payment has been made. In practice, it is frequently incorporated into suppliers’ general terms and conditions.

In the event of the buyer’s bankruptcy, the seller may reclaim the goods on the basis of the retention of title, provided the applicable conditions have been satisfied.