Terms and conditions sometimes include a retention of title clause. This provides that goods sold on credit and delivered to the buyer do not belong to the buyer until they have been paid for.

A retention of title clause will be effective if:

• The terms and conditions that contain it form part of the contract
• It is possible to identify and return the goods claimed.

Goods that have been processed usually cannot be claimed.

A clause may include a right to enter premises and take your goods back. Without this you will need a court order or agreement to collect your goods. Even with this provision you have to be careful. You may have a contractual right to collect your goods but you cannot use force and break in. If you do, you may well break the criminal law. Take advice!

A liquidator, administrator or administrative receiver will look very carefully at a retention of title clause and usually want to challenge it.

Each clause has to be looked at separately. Complex issues can arise out of the wording of the clause and advice should be taken as early as possible.

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