1
Associate Professor of Private Law Department, Islamic Azad University, Tehran west Branch, Iran
2
Department of law
10.48308/jlr.2026.238492.2840
Abstract
The retention of ownership clause is a condition under which the transfer of ownership of the sold item is contingent upon the payment of the price. There is a difference of opinion regarding the nature of this condition. Some legal scholars consider it to constitute a pledge of the sold item to the benefit of the seller, while others view it as a suspensive condition. Regardless of nature of the retention of ownership clause, a critical question arises: what is the jurisprudential and legal status of the buyer,s transactions involving the sold item after entering into contract containing such a clause? Some scholars believe that if the transferee acts in good faith, the transaction performed by the buyer is valid. Others consider the buyer,s transactions to be instances of unauthorized transactions, rendering them voidable. The authors hypothesize that if the nature of the condition is deemed to be a pledge of the sold item to the seller, the buyer becomes the immediate owner of the item, and their legal transactions are valid, but they remain subject to the seller,s (pledgee,s) right. If the seller exercises their right, the buyer,s transactions are annulled from the date of exercise. However, if the condition is considered a suspensive one, the buyer,s transactions are valid but subject to the seller,s right. If the buyer fails to pay the price, their transactions will be annulled retroactively from the date of conclusion.
niknejad, J. and Naderi semiromi, A. (2026). The Legal and Jurisprudential Status of the Buyers Transactions in a Sale with the Retention of Ownership Clause. Legal Research Quarterly, (), -. doi: 10.48308/jlr.2026.238492.2840
MLA
niknejad, J. , and Naderi semiromi, A. . "The Legal and Jurisprudential Status of the Buyers Transactions in a Sale with the Retention of Ownership Clause", Legal Research Quarterly, , , 2026, -. doi: 10.48308/jlr.2026.238492.2840
HARVARD
niknejad, J., Naderi semiromi, A. (2026). 'The Legal and Jurisprudential Status of the Buyers Transactions in a Sale with the Retention of Ownership Clause', Legal Research Quarterly, (), pp. -. doi: 10.48308/jlr.2026.238492.2840
CHICAGO
J. niknejad and A. Naderi semiromi, "The Legal and Jurisprudential Status of the Buyers Transactions in a Sale with the Retention of Ownership Clause," Legal Research Quarterly, (2026): -, doi: 10.48308/jlr.2026.238492.2840
VANCOUVER
niknejad, J., Naderi semiromi, A. The Legal and Jurisprudential Status of the Buyers Transactions in a Sale with the Retention of Ownership Clause. Legal Research Quarterly, 2026; (): -. doi: 10.48308/jlr.2026.238492.2840
)