Application Of Retention Of Title Clause ( Rot ) Essay

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Over the years, the commercial law regulating sale of goods and, subsequently, transfer of property had significantly evolved. Indeed, a topical subject brought before judicial courts have been the validity of retention of title clause (ROT), which namely gives the right to the seller to retain title in the property of unpaid goods that had physically passed to the buyer . This latest clause has been legitimate in Aluminium Industrie Vaassen B.V v Romalpa Aluminium , where a supplier was able to recover, before debtors, unpaid goods from an insolvent receiver because there was a contractual provision reserving its ownership until he was fully paid. Concretely, this decision was an enormous gain for the seller’s position because it validated the right to claim payment over those goods before every other interested parties when it is provided in a contract.
However, some more complexes cases had forced the courts to specify conditions when ROT clauses will be applicable to the facts. Thus, in the light of the recent case named Glencore International AG v Metro Trading International Inc, the following essay will outline when the seller’s ROT clause will be effective regarding stored, mixed and, finally, manufactured goods by the buyer .

The transfer of property in a contract for the sale of goods is determined by the intention of the parties . Thus, a ROT clause has to be incorporated into the terms and conditions of…

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