Factoring Companies Guidebook
Retention of Title Checklist
Does the Client supply goods to its customers?
No (no further action) / Yes (see below)
Do the terms and conditions of sale, of the Client contain retention of title clause, incorporated into the Client's contracts with it's customers and governs these contracts?
No (no further action) / Yes (see below)
Does the Client resell goods in the same form as they are purchased from its suppliers?
OR
If the Client is a manufacturer of goods, can the material supplied to the Client for fabrication to product, be removed easily from the product without damaging it?
No (no further action) / Yes (see below)
Do the terms and conditions of sale, of the supplier contain a retention of Title clause?
No (no further action) / Yes (see below)
Are the supplier's terms and conditions of sale incorporated into the contracts with the Client?
No (no further action) / Yes (see below)
Does the supplier deliver goods direct to the Client's customers or have knowledge of the customers, to whom its goods are ultimately supplied?
No (no further action) / Yes (see below)
Is action required?
1. If the answer to any of the questions is No (subject to point 4 below), no action is required.
2. Until stage 6 is reached, no action need be considered.
3. If stage 6 is reached (but not stage 7), the unpaid supplier may have the right to repossess goods remaining in the possession of the Client. They will not be able to make any claim to goods that have been resold to the Client's customer, or to the proceeds of the sub-sales of the goods.
4. Theoretically, the unpaid supplier will have difficulty in pursuing any claim against the customer for the return of goods unless it knows the identity of the Client's customer or has means of establishing their identity. Caution however is required as details of the Client's customers could be obtained either with the collaboration of the Client or upon application to the Court for discovery of documents.
5. If the conditions applicable to all seven stages are satisfied, Action is Required
