A Romalpa clause is used by a seller of goods who does not wish to transfer ownership thereof to the buyer until the latter has paid for those goods or, very often, for all of the goods that have been delivered to the buyer. However, the contract of sale will often provide that the risk of loss, damage or destruction to the goods will pass to the buyer upon their delivery to the buyer and not upon the transfer of the title thereto. The basis for this retention of title by the seller is s 20 of the Sale of Goods Act 1896 (Qld) which allows the parties to a contract for the sale of specific goods to decide when the property therein is to pass to the buyer.
Ong, Denis S. K
Bond Law Review:
2, Article 5.
Available at: http://epublications.bond.edu.au/blr/vol4/iss2/5