| Commentary

390 Tracing and fiduciary relationships

| Commentary

390 Tracing and fiduciary relationships

If a company cannot recover enough of the product it has supplied to eliminate the debt owed by the distributor, then the company may be able to claim that the company's interest in the product has been transferred to the proceeds of sale of the product.

In order to claim the proceeds of sale of the product the company must be able to show a fiduciary relationship (ie a relationship of good faith) between itself and the distributor, imputing a duty on the distributor to account to the company for the proceeds of sale. Clauses which

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial