How to keep ownership of your goods and recover them when a buyer goes under? There is a popular myth that buyers do not own goods until the buyer has paid. This is legally wrong. Instead title passes on delivery, unless a clause has been agreed in a contract between the parties that title passes on payment. This briefing looks at how to protect your business to ensure when a customer goes out of business you can recover your goods rather than being left as an unsecured creditor, who usually receives nothing. The law is complicated and badly drafted clauses often fail. Sometimes they are classed as a mortgage or charge and are void because they were not registered at Companies House. At other times the contract clause was never sent to the other party or not properly incorporated into the contract between the parties. This briefing shows you how to draft such clauses to your commercial advantage, how to recover goods if a buyer goes out of business without paying and conveys the practical steps you need to take to improve your legal position. It also shows you how to protect yourself against future insolvency of a customer. Did you know, this report has CPD hours accredited to it!
Thorogood legal reports are accredited by The Solicitors Regulation Authority (CPD reference DVQ/THPU) for continuing professional development as distance learning education. Don't miss out on this chance to collect your hours! NB: Solicitors may claim up to 75 per cent (12 hours) of their annual CPD requirement by undertaking distance learning education.