Romalpa clause


Romalpa clause
A clause included in a contract of sale in which the seller retains the title of the goods sold until they have been paid for. This is of importance to accountants as it may affect the ownership of stocks; it is essential to determine whether the commercial substance of a transaction rests ownership of an asset in the purchaser, irrespective of any legal agreement. This clause derives its name from the case of Aluminium Industrie Vasseen BV v. Romalpa Aluminium Ltd (1976), which was concerned with the practice of selling goods subject to reservation of title

Accounting dictionary. 2014.

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  • Romalpa clause — a clause in a contract modelled on the clause that was upheld in the English Court of Appeal in the case Aluminium Industrie Vassen BV v . Romalpa Aluminium [1976] 1 WLR 676. There are two main elements: (2) (1) retention of title. Because of the …   Law dictionary

  • Romalpa clause — A clause included in a contract of sale in which the seller retains the title of the goods sold until they have been paid for. This is of importance to accountants as it may affect the ownership of stocks; it is essential to determine whether the …   Big dictionary of business and management

  • Romalpa clause — noun a clause in a contract, whereby the seller provides that title to the goods does not pass to the buyer until the buyer has paid for them COMMENT: Called after the case of Aluminium Industrie Vaassen BV v Romalpa Ltd …   Dictionary of banking and finance

  • Title retention clause — A retention of title clause (also called a Romalpa clause in some jurisdictions [Named after the decision in Aluminium Industrie v Romalpa [1976] 1 WLR 676] ) is a provision in a contract for the sale of goods that the title to the goods remains… …   Wikipedia

  • retention of title — A seller of goods will often wish to retain ownership of goods until the money for those goods (or even all money owed to him by the buyer) has been paid. In addition he may seek to recover possession of the goods if the buyer becomes insolvent… …   Law dictionary

  • reservation of title — See Romalpa clause. Collins dictionary of law. W. J. Stewart. 2001 …   Law dictionary

  • reservation of title — A sale of goods in which the seller retains title to the goods sold, or any products made from them, or the resulting sale proceeds, until the buyer pays for the goods. See also: Romalpa clause …   Accounting dictionary

  • reservation of title — A sale of goods in which the seller retains title to the goods sold, or any products made from them, or the resulting sale proceeds, until the buyer pays for the goods. See also Romalpa clause …   Big dictionary of business and management

  • United Kingdom company law — Beside the River Thames, the City of London is a global financial centre. Within the Square Mile, the London Stock Exchange lies at the heart of the United Kingdom s corporations. United Kingdom company law is the body of rules that concern… …   Wikipedia

  • severability — the rule of construction of contracts that allows a court to ignore a part of a contract that would render it in some way defective and to read instead what is left. It has been applied to restrictive covenants where, if the words are capable of… …   Law dictionary


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