Protecting an Unsecured Creditor
Our client designs and sells bespoke gift products to retailers for resale. One of its customers found itself in financial difficulties and ultimately appointed an administrator to deal with its affairs. Our client found itself in a position where the goods that it had supplied had not been paid for before the onset of the administration and was anxious to know what it could do.
Upon a review of its terms and conditions, we identified that these did not contain a provision retaining title to the goods supplied until payment had been received in full. As such, our client found itself in a position as an unsecured creditor. We redrafted our client's terms and conditions to include appropriate clauses which ensured that should such a situation arise in the future they would be able to recover their goods (or their value).
Please note this information is provided by way of example and may not be complete and is certainly not intended to constitute legal advice. You should take bespoke advice for your circumstances.