A contract clause which entitles the buyer to hold back 5% of the final price for six months to en-sure everything is in order is known as a ——— clause:

A contract clause which entitles the buyer to hold back 5% of the final price for six months to en-sure everything is in order is known as a ——— clause:
A . Retention
B . Redemption
C . Intention
D . Retainer

View Answer

Answer: A

Explanation:

‘Retention’ – from the word ‘retain’, meaning to ‘keep in place’, ‘hold back’, ‘keep possession of’ something (Concise Oxford Dictionary, fifth edition) . In this case, 5% of the contract price.