Podcast
Questions and Answers
Retention of Title clauses are contractual measures used to ensure payment for goods sold on ______.
Retention of Title clauses are contractual measures used to ensure payment for goods sold on ______.
credit
The enforceability of ROT clauses was established in the seminal case of ______ in the UK.
The enforceability of ROT clauses was established in the seminal case of ______ in the UK.
Aluminium Industrie Vaassen BV v Romalpa Aluminium Ltd
According to the Court of Appeal, correctly drafted ROT clauses might effectively maintain ownership of the goods and earnings from their ______.
According to the Court of Appeal, correctly drafted ROT clauses might effectively maintain ownership of the goods and earnings from their ______.
resale
In Ireland, ROT clauses were recognised as legitimate under common law standards by ______ courts.
In Ireland, ROT clauses were recognised as legitimate under common law standards by ______ courts.
The Sale of Goods Act 1893, section 19(1), acknowledges that transfer of ownership may be contingent upon certain ______.
The Sale of Goods Act 1893, section 19(1), acknowledges that transfer of ownership may be contingent upon certain ______.
In McEntire v Crossley Brothers Ltd, the House of Lords upheld a seller’s claim under a ROT clause to a petrol ______.
In McEntire v Crossley Brothers Ltd, the House of Lords upheld a seller’s claim under a ROT clause to a petrol ______.
Ownership of definite commodities is typically transferred to the buyer at the signing of the ______ agreement.
Ownership of definite commodities is typically transferred to the buyer at the signing of the ______ agreement.
Challenges regarding the interpretation and enforceability of ROT clauses often arise in ______ settings.
Challenges regarding the interpretation and enforceability of ROT clauses often arise in ______ settings.
Differentiating ROT provisions as methods of ownership retention against ______ interests has proven difficult.
Differentiating ROT provisions as methods of ownership retention against ______ interests has proven difficult.
In the UK, cases like Re Bond Worth Ltd clarified that ROT clauses that apply to manufactured goods or revenues may be considered registrable ______.
In the UK, cases like Re Bond Worth Ltd clarified that ROT clauses that apply to manufactured goods or revenues may be considered registrable ______.
According to the UK courts’ ruling in Compaq Computer Ltd v Abercorn Group Ltd, a distinct and identifiable ______ was necessary for claim tracing.
According to the UK courts’ ruling in Compaq Computer Ltd v Abercorn Group Ltd, a distinct and identifiable ______ was necessary for claim tracing.
The enforceability of ROT provisions has been restricted by the principle of ______, which states that commodities lose their distinct character.
The enforceability of ROT provisions has been restricted by the principle of ______, which states that commodities lose their distinct character.
A ROT clause may be added to a contract by ______, by providing reasonable notice and by course of dealings.
A ROT clause may be added to a contract by ______, by providing reasonable notice and by course of dealings.
The case of Sugar Distributors Ltd v Monaghan Cash and Carry demonstrates how a ROT may be added to a contract by giving reasonable ______.
The case of Sugar Distributors Ltd v Monaghan Cash and Carry demonstrates how a ROT may be added to a contract by giving reasonable ______.
We recognise the course of dealings aspect in McCutcheon v David MacBrayne Ltd, where it is said that there is a requirement of consistent ______ before this argument will work.
We recognise the course of dealings aspect in McCutcheon v David MacBrayne Ltd, where it is said that there is a requirement of consistent ______ before this argument will work.
Proposals for change in the law relating to retention of title have been made in a number of other ______ and in some instances implemented.
Proposals for change in the law relating to retention of title have been made in a number of other ______ and in some instances implemented.
Flashcards
Retention of Title (ROT) Clause
Retention of Title (ROT) Clause
A contractual clause used by sellers to retain ownership of goods sold on credit until full payment is received.
Aluminium Industrie Vaassen BV v Romalpa Aluminium Ltd
Aluminium Industrie Vaassen BV v Romalpa Aluminium Ltd
A key legal case that established the enforceability of ROT clauses in the UK. The Court of Appeal ruled that well-drafted clauses could effectively retain ownership of goods and earnings from their resale.
Re Interview Ltd
Re Interview Ltd
Established the validity of ROT clauses in Ireland. This case highlighted the alignment of Irish courts with the UK in recognizing the legitimacy of these clauses.
Bateman v Green and King
Bateman v Green and King
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McEntire v Crossley Brothers Ltd
McEntire v Crossley Brothers Ltd
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Challenges in Applying ROT Clauses
Challenges in Applying ROT Clauses
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Potential for Reform
Potential for Reform
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Sale of Goods Act 1893
Sale of Goods Act 1893
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Accession (in relation to ROT clauses)
Accession (in relation to ROT clauses)
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Enforcement of ROT Clauses after Sale or Integration
Enforcement of ROT Clauses after Sale or Integration
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Equitable Charge
Equitable Charge
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Incorporation of ROT Clauses
Incorporation of ROT Clauses
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ROT Clauses that Track Sale Revenues
ROT Clauses that Track Sale Revenues
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ROT Clauses resembling Security Agreements
ROT Clauses resembling Security Agreements
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Retention of Title (ROT)
Retention of Title (ROT)
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Study Notes
Retention of Title Clauses
- Retention of title clauses are contractual provisions used to guarantee payment for goods sold on credit.
- Ownership of the goods remains with the seller until certain payment conditions are met.
- These clauses pose significant legal challenges, particularly in cases of insolvency and conflicting creditor claims.
Irish and UK Court Decisions
- ROT clauses have been problematic for Irish and UK courts.
- Courts have considered issues relating to insolvency and conflicting creditor claims.
- The Aluminium Industrie Vaassen BV v Romalpa Aluminium case in the UK established the enforceability of ROT clauses when correctly drafted and agreed upon.
- Irish courts have recognised ROT clauses as legitimate under common law principles, as exemplified in cases like Re Interview Ltd and Bateman v Green and King.
- ROT clauses in Irish cases (e.g., McEntire v Crossley Brothers Ltd) were upheld when a buyer went bankrupt before paying for goods.
Potential for Reform
- The complexities associated with implementing these clauses have created the need for reform.
- Improvement in their effectiveness includes a streamlined approach.
- Potential reform suggestions include issues of codifying statutory provisions.
- A proposed solution is that ROT clauses should not be enforceable unless supported by clear written agreements signed by the buyer.
- ROT clauses should not be treated as forming charges on goods or other interests.
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Description
This quiz explores retention of title clauses, contractual provisions used to secure payment for goods sold on credit. It delves into the legal challenges these clauses face in Irish and UK courts, particularly regarding insolvency and creditor claims. Through landmark cases, the enforceability and recognition of ROT clauses are examined.
