Study On Retention Of Title

Retention of Title, one kind of untypical guaranties, refers to a system that in saleand purchase contracts, the seller may reserve his ownership until certain conditionsagreed on by both parties are fulfilled although the purchaser could, by terms of thecontract, possess and make use of the goods.Retention of title ensures transaction security and has superiorities over typicalguaranties such as mortgage, pledge and lien. Article 134 of Contract Law of the People'sRepublic of China introduces the system of retention of title. However, this article is toosimple and too cursory to guide legal practice in real life. In order to perfect our country'slegislation of the system of retention of title, the author reviews relevant legislations,theories and judicial cases of other countries and districts and makes probe into hot issuesof retention of title both on theoretical level and on practical level.This paper comprises introduction, text and conclusion. The text consists of fourchapters:Chapterâ… provides an overview of retention of title. After defining retention of title,this chapter analyses the function of it and classifies it into four types, which are simpleretention of title, prolonged retention of title, extended retention of title and complexretention of title. Besides, this chapter proffers information about retention of titlelegislations in German, Switzerland, France, Japan, Taiwan District, British and U.S.A. Chapterâ… is the brief introduction of retention of title.Chapterâ…¡makes researches on the subject of retention of title and reasonableprocedure to create retention of title. Making reference to foreign legislations, the authormaintains that retention of title should be confined to chattels. In sales of real estate, wecould protect the interests of the seller and the purchaser by virtue of preliminaryregistration instead of retention of title system. After comparing advantages anddisadvantages of different legal practice, the author believes that both parties of purchaseand sale contracts should register retention of title in addition to contracts in writingforms to create retention of title. We also could adopt American registration system toavoid excessive exposure of economic information of merchants to the public.Chapterâ…¢focuses on the relationship between the seller and buyer under retentionof title: the expectant right of the buyer and the recall right of the seller. This chapterdeals with issues of the legal nature, the protection and the transferring of the expectantright of the buyer, as well as issues of the circumstances under which the purchaser couldexercise recall right, the nature of the recall right and the prolonging of the recall right ofthe seller. The author believes it makes no sense to argue whether the expectant right ofthe buyer is creditor's right or real right because they are concepts under differenttaxonomies. The recall right of the seller displays the seller's ownership. The authoradvocates that we should make reference to relative legislations in Taiwan district whenestablishing recall right system in our country.Chapterâ…£makes researches on how to balance the interests among the seller, thebuyer and the third party when retention of title and typical guaranty coexist. The authorprovides suggestions to deal with different situations after taking into consideration manyfactors such as legislations, the good will of the third party and the superiority of lien.