Prosper Spring

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In the event of a customer insolvency,
ensure you notify the insolvency
practitioner of your claim to retain title
to the goods as quickly as possible.
Good drafting is everything:
The effectiveness of a retention of title
clause lies in careful drafting and
consideration of whether that drafting
constitutes a charge.
If a clause is drafted too widely, it may
constitute a charge over the buyer’s assets
and any claim will be that of a secured
creditor.
While this will be preferable to that of an
unsecured creditor, it is of little use if the
asset in question has been disposed of and,
crucially, will rank behind the claim of the
beneficiary of a well drafted retention of title
clause, who have priority over both secured
and unsecured creditor claims.
Notifying the insolvency practitioner
of your claim:
In any insolvency, enquiries will be made
to ensure the goods and assets to be
realised are not subject to a retention of title
clause. These enquiries will often involve
examination of any contractual
documentation relating to the goods, so it is
imperative that the clauses are drafted and
incorporated effectively. Failure to do so
may lead to the assumption that the goods
belong to the insolvent customer and can
be realised for the benefit of the general
body of creditors as a whole.
In the event of a customer insolvency,
ensure you notify the insolvency practitioner
of your claim to retain title to the goods as
quickly as possible. If the insolvency
practitioner is not aware of your claim, there
is a real risk that those goods will be used or
sold without your consent.
Remember that the onus is on you as the
supplier to prove your claim which will
require significant time and effort on your
part. The reward of enforcing the clause is
much higher than taking the risk that you
will rank at the bottom of the creditor pile.
Points to consider:
When reviewing your terms and
conditions, it is important to consider both
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Tracy Lake
the content and how it is presented to your
customers. Here are my top five tips to have
in mind when reviewing your terms and
conditions:
• Expressly state in any pre-contract
correspondence, including quotations, that
the contract will be subject to your terms
and conditions and include a copy of your
terms and conditions
• Include a link to the terms in your email
footers and confirm that all contracts formed
with customers will be subject to these
terms and conditions
• Include a copy of your terms and
conditions on your website so that they are
easily accessible
• Ensure you have a well-drafted retention
of title clause and make all payment
deadlines clear; and
• If you receive terms and conditions from
your customer which are not agreeable, these
need to be formally rejected in writing and
confirmation that your terms and conditions
are applicable will need to be set out
At Higgs LLP we have a dedicated team
of Commercial solicitors able to advise on
the review of your terms and conditions to
ensure maximum protection in the event of
customer insolvency. If you are already
dealing with a retention of title dispute, our
Dispute Resolution team can help. If your
dispute is with an insolvent customer, our
team of Restructuring & Insolvency
specialists will be happy to assist.
Fore more information, contact Suky Mann
on suky.mann@higgsllp.co.uk or
01384 327304, or Tracy Lake on
tracy.lake@higgsllp.co.uk or 01384 327 217.
MEMBERS NEWS EXTRA
Good’ news for City of
Wolverhampton College!
Wolverhampton College was graded
‘Good’ – the second highest possible
grading – in its most recent Ofsted
inspection.
In the report, inspectors rated a range
of types of provision as ‘Good’ -
including education programmes for
young people, adult learning
programmes and provision for learners
with high needs – as well as quality of
education, behaviour and attitudes,
personal development and leadership
and management.
The report also highlights a number of
key strengths, including the provision of a
broad curriculum which meets the needs
of the local economy, how the college
engages with employers and stakeholders
to ensure that curriculum content aligns
with current industry trends and practices,
and implementing courses to meet local
skills needs in construction, electric
vehicle maintenance, rail track safety and
social care.
There was also praise for the tutors’
courses, as well as for the students,
whose attitude and interest in learning
was particularly impressive.
Grant boost for
RWT NHS Trust
The Royal Wolverhampton NHS Trust
(RWT) Charity, in partnership with
Wolverhampton Voluntary and
Community Action (WVCA) has been
awarded £220,000 from NHS Charities
Together for project Holistic
Opportunities Preventing Exclusion.
The grant means RWT can recruit,
train, manage and support a full-time
Link Volunteer Co-ordinator, a
part-time Link Administration Officer,
and up to 200 volunteers per year, to
work alongside the city’s Social
Prescribing Service. This is run by
WVCA, to help tackle loneliness,
isolation, depression and anxiety.
There are currently more than 3,000
referrals a year to the Social
Prescribing Service, following a spike
in referrals for mental health in the last
two years following the pandemic.
HOPE will work alongside the
service – which identifies and refers
people to improve their wellbeing –
by linking them to community services
such as social groups, sporting
activities and other support groups.
PROSPER SPRING 2023 45