Can Creditors Claim Retention Of Title To Goods?
To claim retention of title, a creditor must have informed you, at the commencement of your trading relationship, that if you do not pay their invoices, they are entitled to claim retention of title over any goods of theirs that you hold that are unsold.
To claim retention of title, a creditor must be able to identify each item that remains unsold to a particular invoice and this is usually done through unique reference numbers or specific serial marks that are easily identifiable.
If a company goes into liquidation or administration, creditors who have retention of title will generally be put in touch with the agent, that the liquidator or administrator has instructed, to assist him with the company’s assets.
The verification of a retention of title claim is a two-stage process.
Stage one is a physical inspection to identify assets that belong to a creditor that may be subject to retention of title.
Stage two is verification of the appropriate documentation that establishes the retention of title claim is valid.
Thereafter, any validly approved items may be returned to the creditor and offset against the amount that is claimed in the insolvency.