Overview

Suppliers of goods often get a rough deal when their customers become insolvent because they are unsecured creditors. Retention of Title (RoT) clauses can provide some protection to suppliers.

They work by ensuring that ownership is only transferred when the buyer has paid for the goods in full. This gives the seller priority over secured and unsecured creditors in the case of insolvency.

However, as the case of Bulbinder Singh Sandhu (trading as Isher Fashions UK) v Jet Star Retail Limited (trading as Mark One) (in administration) shows, care needs to be taken to ensure that RoT clauses are effective.
In this briefing Wragge & Co's dispute resolution team examine the decision.

To read it click ‘View Briefing’