Romalpa~~~~

Specially dedicated to Da....


Ms Nadiah: Romalpa clause, do know what is that.... It's important....

After that class (last week), Da seems to be super "excited" with the term Romalpa... I went over her place on last Wednesday as planned to jog but the weather is not supporting my idea =..=" Well, since I was there might as well chit chat with her.... Know what's our topic??? Romalpa..... She was trying to find the court case through internet but all the court case description we found are too long.... So darn long and we are so darn lazy to read that... Hahah..


*After few days*
All I can see through Da's eyes is Romalpa, Romalpa, and more Romalpa... Hahaha... I think she felt in love with the name.... Kept on asking regarding the court case.... Seaching through law books yet unsuccessful in finding the court case... Asking Jana and me how to search for court case... =..=" Looking at her... I became stress...


Today we were having our usual law class...... Ms Nadiah was discussing about Romalpa.... We were doing tutorial and when she mentioned the word.... I began to make fun of it... =P Don't ask.... Hahaha... It's fun~~~~~ I enjoy my day..... =)


Just for general knowledge......
A retention of title clause (also called a Romalpa clause in some jurisdictions) is a provision in a contract for the sale of goods that the title to the goods remains vested in the seller until certain obligations (usually payment of the purchase price) are fulfilled by the buyer.


Purpose
The main purposes of such clauses are to ensure that where goods are supplied on credit, if the buyer subsequently goes into bankruptcy, the seller can repossess the goods. Retention of title clauses are most prevalent in Europe (particularly in Germany). In North America they appear to be less common, and there may be a variety of reasons for this.

Title retention clauses are often seen as a natural extension of the credit economy; where suppliers are expected to sell goods on credit, there is a reasonable expectation that if they are not paid they should be able to repossess the goods. Nonetheless, in a number of jurisdictions, insolvency regimes or credit arrangement regimes prevent title retention clauses from being enforced where doing so would upset the administering of the regime.

Legal analysis
Although conceptually very simple, retention of title clauses have become increasingly widely drafted, which has resulted in the courts in a number of countries striking down the clauses, or recharacterising them as the grant of a security interest. Several particular problems which have resulted in clauses

• If for example, the clause reserves only part of the title to the seller (instead of reserving title to the whole thing) then in many jurisdictions this is recharacterised as an equitable charge, and is often void if certain registration requirements are not complied with.^[4]

• Problems can also arise where the goods sold are mixed with other goods of a similar nature, so that they are no longer identifiable (ie. a quantity of oil, or grain).

• Many jurisdictions allow the buyer to re-sell the goods before title has passed to him (often this is the only way that he can pay the seller). In many jurisdictions such an onward sale passes good title to the subsequent purchaser, and the original seller loses title despite the clause

• Where the seller tries to have a clause which provides that, if the buyer re-sells the goods, then the proceeds of sale of the goods shall be held on trust for the seller, this can be recharacterised as a registrable charge, which may also be void for non-registration.

• Another frequently litigated problem occurs where the goods which are subject to the clause are then either improved (ie. raw thread is worked into cloth) or mixed with other raw materials to form a new product (ie. silica is used to make glass).

• In some countries, where a clause purports to retain title until, not only the purchase price, but also any other debts of the buyer to the seller are paid in full, such clauses have been struck down for non-compliance with security registration requirements in those jurisdictions.

(Source: wikipedia)


Long post indeed... Enjoy reading.. Hahaha....
*With cute slang* ROMALPAAAAAAAAAAAAAAAAAAAAAAAA~~~~~
P/s AMY!!! COME COME.... Where's Robeto, your son??? I will call my ALUMINIUM to come and join in the group later ya...
Da, sorry for promoting your son's name without your consent... =P