Clause for thought
13 September 2012
Suppliers may use retention of title conditions in contracts to give them leverage if a buyer defaults on payment. Ken Burnett explains how they can affect purchasers
Recent corporate failures have focused suppliers’ attention on the difficulties in securing payment when buyers encounter cash flow problems. Suppliers understandably want reassurance that payment will be forthcoming and that they retain legal ownership of goods supplied until they have been paid for. One established strategy for achieving this objective is to...