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Attempts by suppliers of materials to retain title to goods manufactured from that material have generally been unsuccessful. Explain why this is so, and discuss how the objections raised by the courts might be overcome. Purpose of retention of title clauses Under section 17 and 18 of the Sale of Goods Act 1979 ("SGA"), property in goods sold is normally transferred to the buyer when the contract for sale is concluded. If the buyer becomes insolvent, the goods sold would become part of its general assets and an unpaid seller would have only a personal claim against the buyer. A retention of title clause allows the seller to retain property in the goods even though possession is transferred to the buyer. Section 17 of the SGA provides that property in goods passes only when parties intend for it to be transferred. A retention of title clause in the contract for sale therefore...

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