Read the sentences below and identify which of the three sections contains an error. TA S6, TA S11

Retention of title clause

A retention of title (ROT) clause is a contractual provision that allows the seller to retain legal ownership of commercial good until they are paid for in full or other conditions are met. A ROT clause is a way to protect suppliers in the event that the buyer becomes insolvent or declares bankruptcy.

A retention of title (ROT) clause is a contractual provision that allows the seller to retain legal ownership of commercial good
until they are paid for in full or other conditions are met.
A ROT clause is a way to protect suppliers in the event that the buyer becomes insolvent or declares bankruptcy.
(1 p.)



Example of retention of title clause is as follows:

It is understood that the Products hereunder remain the property of the Seller, until the Buyer has completed payment completely. Until such point the Products shall be deemed to be an deposit in possession of the Buyer, and the Buyer shall meet all obligations incurred by receiving such deposit, while being entitled to administer the Products with due diligence.

It is understood that the Products hereunder remain the property of the Seller, until the Buyer has completed payment completely.
Until such point the Products shall be deemed to be an deposit in possession of the Buyer,
and the Buyer shall meet all obligations incurred by receiving such deposit, while being entitled to administer the Products with due diligence.
(1 p.)