July 2018

What is a Shareholders Agreement

Retaining ownership of your goods via a retention of title clause

A retention of title clause can be a useful way to protect yourself in business if you supply goods on credit, as it provides you with a form of insurance if your customers fail to pay you. Depending on how the clause is drafted you will either have the right to take your goods back or to claim a stake in any money the customer has received from selling them on. Used appropriately they can be very effective.

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What is a Shareholders Agreement

Are ‘no oral modification’ clauses effective in the event of a dispute?

As a general rule the courts try not to interfere in commercial contracts when a dispute arises as they rightly believe that businesses are best placed to negotiate the terms on which they will deal with each other and, save for in very limited circumstances, that they should be bound by the deal they have struck.

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