Published: 2020-12-23

Delineating the legis rei sitae and legis contractus in determining the law applicable to retention of title

Agata Kozioł Logo ORCID

Abstract

Retention of title as a security on tangible assets is well known in many legal systems. It enables to strengthen the position of the seller in such a contract of sale in which the payment of the price is agreed to be done later than the handing over the good. This instrument disturbs the traditional model of sale in two ways. Firstly, the conclusion of the contract is not directly followed — which takes usually place — by the performance of the obligation to transfer the property. Secondly, the right of property receives in that way a new role to play — it becomes a security right, guarantying the pecuniary claim of the seller and ceases the function of the principal right.

In order to find the law applicable to the retention of title, its different aspects — contractual and real — should be qualified according to their nature. These aspects should be treated separately and be assessed according to the proper legal system. For example, the law applicable to contractual assets of retention of title defines if such belated transfer of ownership affects any general rights and obligations of parties, such as the right to receive benefits from the asset or to bear costs of its maintenance. On the other hand, the 
law of actual location of the asset as a law applicable to real aspects of the retention of title defines the nature of the element disturbing the transfer of ownership and the scope of rights of the seller towards charged good as its owner.

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Citation rules

Kozioł, A. (2020). Delineating the legis rei sitae and legis contractus in determining the law applicable to retention of title. Problemy Prawa Prywatnego Międzynarodowego (“Problems of Private International law”), 27, 233–251. https://doi.org/10.31261/PPPM.2020.27.08

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Vol. 27 (2020)
Published: 2021-01-29


ISSN: 1896-7604
eISSN: 2353-9852
Ikona DOI 10.31261/PPGOS

Publisher
Wydawnictwo Uniwersytetu Śląskiego | University of Silesia Press

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