Sale with deferred transfer of ownership and its applications

A contract of sale is a very important aspect of economic activity. With the growth of commercial transactions, there have occurred deferred-payment sales and installment sales, and thus the emergence of legal issues pertaining to the transfer of ownership and the right of recovery of payments made by the seller. In this study, we analyse sales under a condition that places the transfer of ownership in doubt and discuss the applications. It aims to clarify the legal nature of retention of title clauses and assess the adequacy of existing legal rules in regulating such transactions. The study employs a descriptive analytical approach and reveals that vast case variability exists on the question of the legal classification of retention of title clauses. The most convincing view is that they represent a “suspensive condition” as to vested ownership. As a result, the buyer only owns the property directly for use, not for ownership, and so cannot sell the property. The study suggests reforming Article 478 of the Jordanian Civil Code and including more detailed legislation on sales of this nature.