Docklands Solicitor

Your terms and conditions should provide that ownership of goods supplied by you do not pass to the buyer until they have been paid for.

You will be able to reclaim the goods if the full price is not paid.

Since title has not passed, the goods will not be included in any security given by the buyer to his bank or anyone else.

Depending on the nature for your trade, you might want to use a more sophisticated ROT clause which:

Reserves title until the buyer has paid for all goods supplied by the seller (not just those being sold in this particular instance)

Extend your rights to the proceeds of sale of the goods

Retains your rights over goods, even if they have been mixed and incorporated into other goods (not easy, that one!)

Allows you to enter the buyer’s premises to reclaim the goods

Requires the buyer to store the items separately and identifiably

Labels: retentionof title