Common use of Reservation of ownership Clause in Contracts

Reservation of ownership. 1. The User shall reserve ownership of all items delivered and to be delivered up until the point at which the other party has completely fulfilled all payment obligations towards the User. 2. The payment obligations in paragraph 1 shall consist of the payment of the purchase price for the items delivered and to be delivered plus any demands relating to work carried out in connection with the delivery and demands due to culpable shortcoming by the Other Party in fulfilling its obligations including the payment of compensation, out-of-court collection costs, interests and any penalties. 3. If this refers to the delivery of identical, non-individualized items, the consignment of items relating to the oldest invoice shall be considered to have been sold first. Reservation of ownership shall therefore rest in any case on all items delivered, which at the time of claiming reservation of ownership were still in the Other Party’s stocks, shop and/or property. 4. The Other Party may sell on items subject to reservation of ownership in the context of normal business provided it has also stipulated reservation of ownership on the items delivered with respect to its customers. 5. As long as the items delivered are subject to reservation of ownership, the Other Party shall not be entitled to pledge these items in any way or to put them at the disposal of a financier. 6. The Other Party shall be obliged to inform the User immediately in writing if any third parties assert reservation of ownership or other rights on the items subject to reservation of ownership. 7. The Other Party shall be obliged to carefully preserve the items subject to reservation of ownership and to ensure that they are identifiable as the User’s property until it has fulfilled all its payment obligations towards the User. 8. The Other Party shall arrange for consequential loss insurance or fire and theft insurance, that the items delivered subject to reservation of ownership are covered at all times and to make the insurance policy and the respective premium payment receipts available for inspection by the User on first demand. 9. If the Other Party contravenes the conditions of this article or if the User claims reservation of ownership, the User and its employees shall have the irrevocable right to enter the Other Party’s premises and take back the items subject to reservation of ownership without prejudice to the User’s right to compensation due to damage, loss of earnings and interest and the right to dissolve the agreement giving written notice without further notice of default

Reservation of ownership. 18.1 Notwithstanding delivery of the Goods sold to the Customer, the ownership in the Goods sold in terms of this Agreement shall remain vested in the Company, or any cessionary to whom the Company may cede its rights, until the full purchase price and any other amounts due by the Customer have been paid together with any interest or other costs due to the Company arising out of this Agreement. 8.2 Furthermore, the Company reserves ownership of retained Goods until the Customer has paid any further payments due in terms of this Agreement of whatever nature. 8.3 In the event that the Customer defaults in payment, he shall deliver the Goods to the Company upon receipt of notice by the Customer from the Company, without undue delay. 8.4 The Company may elect, without detracting from other remedies which may be available to it, to continue with the Agreement or to cancel it and cancel the sale of any further Goods to the Customer and to rely on the provisions of this clause to repossess those Goods sold and delivered by the Company to the Customer or to claim specific performance for all the Customer’s obligations, whether or not such obligations would otherwise have fallen due for performance, in either event, without prejudice to the Company’s rights to claim damages. 8.5 The Company’s request for repossession and repossession itself shall not be construed as rescission from the Agreement. After repossession of the delivered items the Company shall be authorised to realise the same. The User realisation proceeds shall reserve ownership be set-offagainstthe Customer’s liabilities, less appropriate realisation costs. The Company may also realise the repossessed Goods by selling them by private contract. 8.6 The Customer undertakes to handle the delivery items with care; in particular, he is obliged to insure them adequately at the reinstatement value against damage caused by fire, water, and theft at hisexpense. 8.7 In case of all attachments or other interventions by third parties, the Customer shall inform the Company in writing without undue delay. The Customer shall be liable to the Company for the judicial and extra-judicial costs of any necessary action pursuant to third party legal actions. 8.8 In processing or transforming the Goods, the Customer shall invariably be acting for the Company and on its behalf. If the Goods are processed with other items not belonging to the Company, the Company shall acquire joint title to the new thing in the same proportion as the value of the delivered and item bears to be delivered up until the point at which the other party has completely fulfilled all payment obligations towards the User. 2. The payment obligations in paragraph 1 shall consist of the payment of the purchase price for the processed items delivered and to be delivered plus any demands relating to work carried out in connection with the delivery and demands due to culpable shortcoming by the Other Party in fulfilling its obligations including the payment of compensation, out-of-court collection costs, interests and any penalties. 3. If this refers to the delivery of identical, non-individualized items, the consignment of items relating to the oldest invoice shall be considered to have been sold first. Reservation of ownership shall therefore rest in any case on all items delivered, which at the time of claiming the processing. In all other cases, the new thing having resulted from the processing shall be governed by the same provision as the Goods. The reservation of ownership were still title shall remain effective in the Other Party’s stocks, shop and/or propertythisregard. 4. The Other Party may sell on items subject to reservation of ownership in the context of normal business provided it has also stipulated reservation of ownership on the items delivered with respect to its customers. 5. As long as the items delivered are subject to reservation of ownership, the Other Party shall not be entitled to pledge these items in any way or to put them at the disposal of a financier. 6. The Other Party shall be obliged to inform the User immediately in writing if any third parties assert reservation of ownership or other rights on the items subject to reservation of ownership. 7. The Other Party shall be obliged to carefully preserve the items subject to reservation of ownership and to ensure that they are identifiable as the User’s property until it has fulfilled all its payment obligations towards the User. 8. The Other Party shall arrange for consequential loss insurance or fire and theft insurance, that the items delivered subject to reservation of ownership are covered at all times and to make the insurance policy and the respective premium payment receipts available for inspection by the User on first demand. 9. If the Other Party contravenes the conditions of this article or if the User claims reservation of ownership, the User and its employees shall have the irrevocable right to enter the Other Party’s premises and take back the items subject to reservation of ownership without prejudice to the User’s right to compensation due to damage, loss of earnings and interest and the right to dissolve the agreement giving written notice without further notice of default