'RETENTION
OF TITLE - ARE YOU COVERED?'
The
laws surrounding retention of title are
complex, and thus often result in unsuccessful
claims.
Retention
of title (or reservation of title) has
been a contentious issue for many years
when customers go into insolvent liquidation.
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Proving
your retention of title claim The majority
of suppliers’ terms and conditions of
trade contain clauses that attempt to retain
ownership of the goods supplied until payment
was made in full. Suppliers are required to
provide copies of their retention of title
terms and conditions, as well as evidence
proving that these were communicated to, and
accepted by, the customer at the time the
agreement was drawn up.
While most retention of title clauses are
well worded, they will be invalid if only
communicated to a company at the time, or
after, the goods are delivered (i.e. post
– contract).
The Suppliers will lose their entitlement
if they fail to ensure that their retention
of title clauses were accepted when they entered
into the business relationship with the customer.
Perfecting your retention of title
clause
With a little care, retention of title claims
can be perfected and suppliers may be happily
reunited with their stock. The following points
should be considered.
-
The best – worded clause is worth
nothing unless you can prove that it
was accepted by your customer prior to contracting.
-
The
most successful retention of title claims,
and those that can be processed the quickest,
are where the supplier is able to provide
a copy of its terms and conditions, signed
by the insolvent company, when the agreement
was made or subsequently modified.
Retention
of title remains a complex area of business
law and companies could save themselves time
and money by ensuring that theirs is watertight.
Our recovery team can assist by reviewing your
retention of title procedures and advising on
the likely success of a claim in an insolvency
situation.
If you require any further assistance please
contact our Business Recovery team and speak
to either Bernard Hoffman or Ian Yerrill. |
