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CIPS L5M5 Exam - Topic 2 Question 13 Discussion

Juicy Boots has a contract with Orange Ltd containing a Retention of Title Clause. Juicy Boots failed to pay for two deliveries, and Orange Ltd reclaims goods already delivered. Is this valid?
A) Yes -- the product still belongs to Orange Ltd
B) Yes -- the product can be reclaimed under any circumstances
C) No -- if Juicy Boots signed for delivery, goods belong to them
D) No -- delivery on time transfers ownership

CIPS L5M5 Exam - Topic 2 Question 13 Discussion

Actual exam question for CIPS's L5M5 exam
Question #: 13
Topic #: 2
[All L5M5 Questions]

Juicy Boots has a contract with Orange Ltd containing a Retention of Title Clause. Juicy Boots failed to pay for two deliveries, and Orange Ltd reclaims goods already delivered. Is this valid?

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Suggested Answer: A

Comprehensive and Detailed Explanation From Exact Extract of Documents:

A Retention of Title Clause states that ownership of goods remains with the seller until full payment is made. According to the L5M5 study guide (p.190), Orange Ltd legally retains ownership of the fruit delivered until Juicy Boots settles payment. This clause protects suppliers, particularly SMEs, from non-payment risks. Signing for delivery does not override the clause, and timely delivery is irrelevant. Retention of Title is an important risk management tool in procurement contracts.

Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.190


by Asha at Apr 11, 2026, 01:43 PM

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Laurene
8 hours ago
A Retention of Title Clause means ownership stays with the seller until paid.
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Tonette
6 days ago
So, does this mean all deliveries are risky if you don't pay?
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Felix
11 days ago
I think once Juicy Boots signed, the goods are theirs.
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Richelle
16 days ago
Wait, can they really take back goods after delivery?
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Aja
2 months ago
Totally agree, Orange Ltd can reclaim the goods!
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Craig
2 months ago
Retention of Title means ownership stays with the seller until paid.
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Callie
3 months ago
I feel like delivery timing plays a big role here. If they delivered on time, maybe D is correct? But I'm not completely confident.
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Jeannetta
3 months ago
I practiced a similar question, and I recall that ownership can depend on the terms of the contract. Could it be A or B?
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Aleta
3 months ago
I'm not entirely sure, but I think if Juicy Boots signed for the delivery, that might mean they own the goods now. So maybe C?
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Karrie
3 months ago
I remember studying Retention of Title Clauses, and I think they allow the seller to reclaim goods until paid for. So, I lean towards A.
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