A simple reserve of ownership clause under a sales contract essentially means that the property remains with the supplier until the goods are paid in full. There are also a number of other red clauses that can be used in appropriate circumstances. In addition, the property reserve applies regardless of the legal nature of the agreement in which it was incorporated. This means that it no longer applies only to a sales contract, but also to other agreements. 4. Companies that register for commercial accounts should carefully review all terms of sale that are part of the application (and request them prior to the signing of an application) to ensure that they are aware of all security interests, such as. B a property reserve clause that can affect them. In all cases, it is advisable to include a property reserve clause in the terms and conditions of sale in all sales documents, such as Z.B. and be signed by the buyer if the buyer is the consumer.
The judge rejected this argument and found that the RED clause had not been included as the duration of the credit application – it had been included as a separate term from each contract for the sale of cleaning products. Each individual contract was established after January 30, 2012, so the transitional arrangements were not applicable. Central appealed the decision, arguing that it was a transitional agreement. However, there is a way to reduce this risk, and that is by incorporating a property reserve clause (ROT) into a sales contract. It is important to seek professional advice when developing such a clause, as the property reserve is a complex area that is complicated by the many possible scenarios that could occur. The Court of Appeal`s decision also clarifies what can be considered a transitional registration. It proposes that, if the parties agree, by January 30, 2012, that all future deliveries of goods are subject to the general terms of a supplier, security interests (for example. B a property reserve clause) may be treated under these conditions as a temporary security interest.