We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
Published online by Cambridge University Press: 23 December 2009
(Retention of title – sale of manufactured products – combined products and proceeds clause)
As in case 7, B has manufactured curtains from cloth supplied by A under retention of title. This time however, B has sold all the curtains produced to two customers, D and E. By the time a bailiff, acting on behalf of an unsecured creditor, C, tries to execute against B's property, D has paid the purchase price in full by transferring the monies to B's bank account. Neither E nor B has paid anything.
Questions
(a) Who is entitled to the monies paid to B by D? Can the bailiff execute against those monies (that is to say, B's bank account as a whole)?
(b) Who can claim payment from E? Can the bailiff execute against the claim arising out of the sub-sale?
(c) Could A get a better right to the claims arising out of sub-sales (for example, by using a differently worded clause or a different type of retention of title clause)? What would be the precise prerequisites? Are such arrangements commonly used?
(d) Instead of an unsecured creditor trying to execute against B's property, B becomes bankrupt. What are the answers to parts (a), (b) and (c) in that situation?
To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.
