Cases - Borden (UK) v Scottish Timber

Record details

Name

Borden (UK) v Scottish Timber

Date

[1981]

Citation

Ch 25, CA

Legislation

Sale of Goods Act 1979

Keywords

Sale of goods - implied terms - Obligation to account - conditions of sale containing retention of title clause - property not to pass to purchaser until all outstanding debts paid - whether retention of title clause effective against materials used in manufacture of new product/good - materials mixed with others to produce new product/good - incorporation of resin into chipboard - purchaser in liquidation - whether sellers entitled to trace and recover proceeds - whether charge on new product - whether charge void for non-registration

Summary

This case demonstrates that retention of title clauses will not be effective with regard to materials that have been irretrievably mixed or incorporated into the works.

In this case, a retention of title clause over resin incorporated into chipboard was deemed ineffective. However, a retention of title clause over engines bolted to a concrete slab might still be effective.