There are two types of legal Clauses.
The first one is a SIMPLE clause contained within a sale agreement indicating that the TITLE to the goods being purchased will stay with the supplier until the total amount of the invoice and monies owing have been paid.
The second is the ALL MONIES clause which means that ALL goods supplied (not just a specific invoice) by the vendor remain the asset and property of the vendor until ALL monies owed to the supplier on ALL accounts are paid.
Who can it benefit?
The clause is predominantly used in B2C trading activities and anyone who works in the trade sector.
What does it mean?
In simple terms, the clause must be accepted and be part of the agreement/ contract/ invoice BEFORE the trading activity takes place. In some cases, if the supplier and customer have been dealing with each other for a period of time then it can be automatically assumed/ argued that as a result of these DEALINGS both parties are aware of the terms of trade between them , including ROT.
Is it Valid?
It is imperative that;
It is clearly notified to the customer each time an order is placed
The purchaser agrees the clause as is incorporated before goods are supplied
Make sure that your goods are easily identifiable. Serial numbers, logos, trademarks are a good way to protect your goods.
Next steps
If you want to find out anything further about this topic then please feel free to call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com.
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
Leave a Reply