Bill and Hold Law and Legal Definition

Bill and Hold is sales billed to customers prior to delivery and held by the seller. In this form of sales arrangement, a seller of a good bills a customer for products but does not ship the product until a later date. In order for a transfer of ownership to occur, certain conditions must be met. These conditions include: payment for the goods, that the goods be segregated from all other similar goods by the seller, and that the goods be finished and ready for use. It is also referred to as bill in place or ship in place.