Reclamation Rights

Reclamation rights refer to a legal provision allowing a seller to reclaim goods sold to a buyer if the buyer fails to pay for them. This right typically applies when the seller delivers goods but the buyer subsequently does not fulfill their payment obligation. In essence, if the buyer is unable to pay, the seller can legally take back their goods to prevent loss. These rights are often outlined in a contract and are important in protecting sellers against financial losses in transactions.