Legal Definitions - right of retention

The right of retention is a legal principle that allows a party to lawfully keep possession of another party's property until a debt or obligation related to that specific property has been satisfied. It serves as a form of security, providing an incentive for the debtor to fulfill their financial or contractual duty in order to regain their property.

Here are some examples illustrating the right of retention:

• Automotive Repair Shop:

  Imagine a car owner takes their vehicle to a mechanic for extensive engine repairs. The mechanic completes the work, but the owner is unable or unwilling to pay the repair bill. In many jurisdictions, the mechanic has a right of retention, meaning they can legally keep possession of the car at their shop until the owner pays for the services rendered. This right encourages the owner to settle the debt to retrieve their vehicle.

• Dry Cleaner:

  Consider a customer who drops off several expensive garments at a dry cleaner. After the cleaning process is complete, the customer disputes the charges and refuses to pay the agreed-upon fee. The dry cleaner, exercising a right of retention, can legally refuse to return the cleaned clothes to the customer until the payment for the cleaning services has been made. The right to retain possession is directly linked to the service performed on those specific items.

• Commercial Storage Facility:

  Suppose a business rents a storage unit to keep excess inventory and office equipment. If the business falls significantly behind on its monthly rental payments, the storage facility's contract often includes a provision for a right of retention (or a lien that incorporates this right). This allows the storage facility to legally prevent the business from accessing or removing its property from the unit until all outstanding storage fees are paid. This right secures the payment for the storage service provided.