Retention of title clauses: protection available to sellers
Please note that this guidance is intended to be used for general information purposes only, is not intended to be a definitive guide to the law and cannot be a substitute for independent advice. NFU members can obtain free initial legal and professional advice from NFU CallFirst on 0370 845 8458.
A major concern for any seller is that they will part with goods and not be paid for them.
To try to protect yourself from this situation, you may include a retention of title clause in your sale contract confirming that the goods will remain yours until your buyer has paid you in full.
A retention of title clause must be suitable both in respect of the type of goods being sold and in the way it interacts with the sale contract as a whole (an obvious example is that it is no good having a retention of title clause and also a clause under which title passes to the buyer on delivery).
Whilst there is no one-size-fits-all clause, the information in this guide may be helpful in considering what would be appropriate in any given case. It is, however, a very good idea to consult a solicitor as the law in this area is complex and constantly evolving.
For free initial legal and professional advice call NFU CallFirst on 0370 845 8458