ABSTRACT

QUESTION 12 Dragonyarns plc sells silk to various garment makers on terms that require payment 30 days after delivery. About 50% of its sales are to regular customers and the rest are to ‘one-off’ customers. Some of its customers resell the silk, whereas other customers use it in the manufacture of dresses and other garments which are then stored or sold. ◗ Advise Dragonyarns plc on why it ought to consider incorporating a retention of title clause into its standard terms of sale and what protection such a clause might provide.