Retentionsprinzip

Retentionsprinzip, literally the principle of retention, is a term used in German-speaking legal and management contexts to describe the practice of holding back or preserving something to secure an obligation, ensure performance, or manage risk. It is not a single codified law, but a general idea that appears in various forms across fields.

In contract law, two main manifestations are commonly cited. The right of retention (Zurückbehaltungsrecht) allows a party to withhold an owed performance until counterpart obligations are fulfilled or a dispute is resolved. The retention of title (Eigentumsvorbehalt) enables a seller to retain ownership of sold goods until payment in full, providing security for the seller against non-payment. Both forms aim to protect the party supplying goods or services and to encourage reliable contract execution.

In business and accounting practice, Retentionsprinzip can relate to the retention of earnings or reserves to strengthen liquidity and fund future investments. In information management, it is associated with data retention policies that define how long information is kept, balancing regulatory requirements, privacy concerns, and storage costs.

Implementation of the principle requires clear rules about scope, duration, and conditions to avoid disputes over when retention applies and what rights remain enforceable. Critics note that retention rules must align with statutory constraints, consumer protections, and data privacy laws.

See also: Eigentumsvorbehalt, Zurückbehaltungsrecht, Pfandrecht, Data retention policy, Retained earnings.