Q&As

When a distributor sells goods that are subject to a retention of title clause, but with the right to resell those goods in the course of its business, is any onward sale by the distributor as an agent on behalf of the original supplier as title has not passed?

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Published by a ÀÏ˾»úÎçÒ¹¸£Àû Commercial expert
Published on: 29 January 2018
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In answering your query we have limited our research to cover a Sale of goods between two businesses as part of an arm’s length commercial transaction.

Under the Sale of Goods Act 1979 (SGA 1979), property in specific or ascertained Goods passes to the buyer when the contracting parties intend it to pass (SGA 1979, s 17) and a seller can, as a term of the contract, reserve the right of disposal (SGA 1979, s 19). A Retention of title (ROT) clause allows the seller to retain title to goods which it has delivered to a buyer until the buyer has paid for them in full or, where permitted to do so, sold them on to a third party (Aluminium Industrie Vaassen v Romalpa Aluminium). The purpose of the ROT is to

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Goods definition
What does Goods mean?

Goods denote personal chattel and other property which may be detached from land.

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