You might be wondering…

“Can the seller refuse to release the item if I’ve only failed to pay storage costs?”
“What counts as reasonably incurred costs?”
“Does this apply even if I already paid the purchase price?”

My clients often ask…

“My customer didn’t pick up the goods, and I had to store them. Can I refuse to release them until he pays storage?”
“The seller won’t give me a machine until I cover transport and storage costs. Is that lawful?”

What the law says in a nutshell

• § 2120(3) Civil Code: Whoever stores the item for the other party may retain it until the other party reimburses reasonably incurred storage costs.

• The right of retention is a security instrument – it prevents the seller from bearing costs caused by the buyer’s delay.

• This also applies where the buyer has taken the item but intends to reject it – they must still care for it in a reasonable way.

Practical significance of the rule

• Seller: has assurance that they don’t have to release the item until reimbursed for additional costs.

• Buyer: must accept that if they are in default of collection or payment, the seller may withhold the goods until storage and other costs are settled.

Common mistakes in practice

• Buyers assume that paying the purchase price automatically entitles them to delivery – forgetting their duty to cover extra costs caused by their delay.

• Sellers charge disproportionate costs (e.g. excessive “penalty” storage fees) – but retention applies only to reasonably incurred expenses.

• Parties fail to agree how costs will be documented – leading to disputes.

How to proceed correctly

1. Seller: record and justify all storage-related expenses.

2. Buyer: remember that beyond the purchase price, you must cover any reasonable additional costs caused by your delay.

3. Both parties: ideally agree in advance on the procedure (e.g. amount of storage fee or method of calculation).

Practical examples

• Buyer failed to collect goods on time, seller had to pay storage to the carrier. The seller retained the goods until reimbursement.

• Seller invoiced the buyer excessive “storage” charges without evidence – the court only awarded actual proven costs.

Why “I already paid the price” is not enough

The purchase price and storage costs are two different obligations. Until both are paid, the seller may refuse to release the item. If the buyer insists that “everything is already paid” but ignores extra costs, access to the goods may be lawfully denied.

Lawyer’s recommendation

I advise sellers: always notify the buyer clearly of what storage costs were incurred and why. I advise buyers: never postpone collection of goods – costs can quickly add up, and you may lose access to the item.

FAQ

Can the seller retain the goods even if I already paid the purchase price?
Yes, if you have not reimbursed the storage costs.

What costs qualify as “reasonably incurred”?
Only those that are proportionate and provable (e.g. storage, transport, insurance).

Does this apply in consumer contracts as well?
Yes, but the seller must prove the necessity and reasonableness of the costs.