Is your business protected against customer non-payment of goods?
In our most recent article exploring Business Protection, Manager Claire Daly and Consultant Caoimhe Lowe, look at the importance of effective Retention of Title provisions in a suppliers contractual terms and conditions.
Retention of Title (ROT) provisions, if effective, enable a supplier in certain circumstances to recover goods that a customer has received but not yet paid for. In the absence of such provisions, title to the goods shall pass to the customer on delivery. ROT clauses are particularly poignant in the event a customer becomes insolvent, as goods subject to a valid ROT claim will not form part of the assets of the company to be sold by an administrator or liquidator. Thus, the supplier generally receives a better recovery than it would have done, had it been ranked as an unsecured creditor of the insolvent customer.
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