Cash-and-Carry Clause Law and Legal Definition

Cash and carry clause is a term of International law. It refers to the U.S. regulation that allowed belligerent countries to pay cash for goods whose export was prohibited. This was introduced to replace the Neutrality Acts of 1936. The cash and carry policy allowed sale of material to belligerents, as long as the recipients arranged for the transport using their own ships and paid immediately in cash. The purpose was to hold neutrality between the United States and European countries, while still giving material aid to Britain.