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Retention of Title

The legal position when selling goods is that ownership of the goods passes to the buyer at the time stipulated in the contract of sale. In the absence of any contrary provision title will pass on delivery.

A Retention of Title (ROT) clause in your sales contract will state that ownership of the goods will not pass to your customer until certain conditions are met, most importantly payment – SO YOU RETAIN OWNERSHIP UNTIL FULL PAYMENT RECEIVED. This can be a real protection if your customer becomes insolvent.

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