THE LEGAL STATUS OF THE BONA FIDE PURCHASERS SUBJECTED TO THE TITLE RETENTION CLAUSE

When there is a title retention clause، the seller is the owner of the subject of sale. The buyer، might yet، sell the same chattel to a third bona fide person. In the conflicts of the interests of the owner and bona fide purchaser، the right of one of them should prevail. Iranian law and its religious background always prefers the right of the owner and neglects the right of the bona fide purchaser. In an international level، however، it is not so. Sale by non-owners is allowed in some systems of law. This article considers different kinds of title retention clauses and the rights of the owners and bona fide purchasers. Economic analyses of these rights lead the writers to support the bona fide purchasers. This would help the interests of the economic efficiency of the commerce as a whole. Opportunity costs would be lower and growth of the commerce would be more. This will amount to development of the countries which، in turn، would amount to the wealth of the universe as a whole. The rules and regulations should help to make the life of the people and merchants easier. The reasoning given in this article serves to support the bona fide purchasers، in order to reach the appropriate goal.