Are retention of title clauses worth the effort?
A well drafted retention of title clause is often enforceable, even if the relevant customer becomes bankrupt or is wound-up. If, however, the relevant goods have been transformed into other goods (such as glue being used to create chipboard) then the retention of title clause will not be effective. Any attempt to draft a clause that extends to goods that have been changed in this way will almost certainly be void unless it is registered under the Corporations Act (C’th).
