April 15th, 2021

What Is A Title Retention Agreement

By JEREMY WARNE

If a number of sellers sold identical pieces of wood to a buyer that were not identified or identified separately, this would render any ownership reserve clause unenforceable, because even if the goods were always in the same form as when they were delivered, it is not possible to distinguish who owns the wood. However, one possible way to circumvent this issue would be the requirement for the buyer to identify the seller`s goods and keep them separately on their premises at any time. In principle, a clause contained in a contract for the sale of goods which, when certain goods are sold to order (i.e. on a credit basis), are not sold to the buyer until the goods are paid. The general rule is different: the property is transferred to the buyer with the delivery of the goods. A prudent seller has property reserve clauses contained in his terms and conditions. A property reserve clause may be inadequate in certain circumstances, for example. B if the goods in issue are perishable or have a low resale value. In such circumstances, it would be wiser to simply require payment before delivery or to reduce the duration of the credit in order to reduce the risk.

Credit control systems should be in place to ensure that there is no accumulation of goods in the hands of the buyer without payment, and it may be reasonable to require the buyer to be insured to take out credit insurance or provide some guarantee through a registered tax on his assets or to provide a mother or bank guarantee to the seller. The pawn tax, which came into force on 1 January 2018, provides a legal basis in the Belgian civil code for the property reserve clause and abolishes Article 101 of the Bankruptcy Act. However, the right to pledge does not define the reserve of ownership, but describes it. The acquisition of a management business or the assets of such an entity can very often be good value for the purchaser; which can pay a much lower price than a solvent takeover. However, if the goods or some of them are subject to a property reserve clause, the customer does not receive any ownership and must deliver to the original supplier. 3. Ordinary transaction – if the buyer resells the goods before payment and the seller is aware of it, it is likely that any ownership reserve clause will not apply. If this is valid, property reserve clauses may allow the supplier to recover unpaid merchandise in the event of bankruptcy or insolvency of the private client.

The goods remain the property of the supplier and are not part of the “heritage” of the insolvent customer, thus preventing the administrator from reselling it. If the supplier has informed the administrator of the clause, they can visit the distributor and pick up the goods. The effect for the retailer (in administration) is that it cannot sell the goods to reduce the debt and thus recover something for the creditors and thus reduce the level of any personal guarantee.

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