The following Commercial Q&A produced in partnership with Tim Herbert of Ignition Law provides comprehensive and up to date legal information covering:
With a standard retention of title clause, the above scenario provides no difficulties. If the buyer fails to pay, then the seller repossesses all of the goods. The buyer then does not have the goods. The seller has no right to sue for the price of the goods, because the title in the goods has not passed to the buyer.
So, the repossession of the goods sees the end of the contract between the parties (not least due to a total failure of consideration). If the seller resells the goods at a higher price, then the buyer cannot complain. Indeed, the buyer is probably saved an action for damages by the seller, as it may not have suffered any loss following the resale.
More difficulty occurs with a clause where the passing of title in the goods is not directly linked to the payment of the price, including where the price is payable on a 'day certain'—in which case, the seller still has a right to sue for the price even though title has not passed.
As an example, in Clough Mill v Martin, payment for the
Free trials are only available to individuals based in the UK
Complete all the fields above to proceed to the next step.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Indirect discriminationThis Practice Note considers unlawful indirect discrimination under Equality Act 2010 (EqA 2010).There is a clear difference between direct and indirect discrimination, and the two are mutually exclusive (although claims may of course be brought in the alternative):•the law
Interim injunctions—the American Cyanamid guidelinesThis Practice Note is concerned with substantive interim injunctions, which are a particular species of injunction granted on a temporary basis ahead of trial. As set out below, there are different considerations depending on whether the interim
Escrow accounts and escrow agreementsThis Practice Note examines why parties involved in a construction project may enter into an escrow agreement (or escrow deed) to set up an escrow account. It looks at the benefits of paying funds into escrow, how an escrow account operates and the provisions
TCC—preparing for and attending a pre-trial review (PTR)Note:•this Practice Note gives specific guidance on matters proceeding in the Technology and Construction Court (TCC) under the provisions set out in CPR 60, CPR PD 60 and the TCC Guide. As these provisions are additional to the general
0330 161 1234