I am a supplier and have just become aware that my customer has gone into liquidation after I delivered a quantity of stock which remains unpaid. Can I get my stock back? Advice from Lisa Lappin, Baker Tilly Mooney Moore.

You should check whether you have a Retention of Title (ROT) clause in relation to the goods supplied. A ROT clause allows the supplier to retain ownership over the goods supplied until payment is received from the customer.

You should immediately notify the Liquidator that you are making a ROT claim. You will usually be supplied with a questionnaire to complete and return, together with supporting documents in respect of your claim. You will also have to identify goods on site which you supplied. You will not be allowed to remove your stock until the Liquidator agrees your claim is valid. This can involve you both obtaining advice on the validity of the claim.

To be valid, the ROT clause must be incorporated into the contract which exists at the time of supply. Incorporation can be achieved by signature of terms/contract or by demonstrating that the terms have been incorporated into the parties overall relationship through a course of dealing.

Time is of the essence – so, the onus is on you to make known your claim, evidence validity and demonstrate that the goods claimed can be identified.

Where any business supplies goods as credit, it is important to consider incorporating a ‘ROT’ clause into your trading terms and conditions. A solicitor should be able to assist in confirming the appropriate terms applicable to your specific goods or products.

Further advice and training in respect of an overall credit policy can be obtained from your solicitor, accountant or organisations such as the Chartered Institute of Credit Management.

Find out more about Baker Tilly Mooney Moore – visit www.bakertillymooneymoore.co.uk