When to use it
Use them before you sell anything at all. This is the only template here that is not about recovering a claim — it is about making the claim strong, long before it becomes a case. The terms must be accepted by the customer in advance. If they first appear on the invoice, they have not been agreed, and then they do not apply.
It has to be right
The wording is rarely the problem. It is the deadline, the fee and what the letter leaves out — and the mistake costs you the expenses, not the debtor.
- The terms must be ACCEPTED in advance — they do not work if they first appear on the invoice
- Between businesses you may agree a HIGHER rate of interest than the statutory one. It is the cheapest improvement there is
- The retention of title must be in place at delivery at the latest — not afterwards
- A venue clause means the case is heard on your home ground
- Towards consumers, the statutory rates cannot be departed from to the customer's detriment
How to fill it in
Most placeholders are trivial. These are not.
- [RATE] in the interest clause
- Between businesses you may agree a HIGHER rate of interest than the statutory one. It is the cheapest improvement there is, and almost no one makes it. Towards consumers, the statutory rates cannot be departed from to the customer's detriment.
- The retention of title
- Must be accepted at delivery at the latest. Agreed afterwards, it is too late — and you then rank as an ordinary unsecured creditor in a bankruptcy instead of collecting your goods.
- [COURT IN CITY]
- Write in your own judicial district. Without a venue clause, the case is heard where the debtor is domiciled — even if that is at the other end of the country.
Frequently asked questions
Do the terms apply if they only appear on the invoice?
No. The invoice comes after the agreement. The terms must be accepted in advance — in the order confirmation, in the contract, or by an active opt-in in the web shop.
Can I agree a higher rate of interest than the statutory one?
Between businesses, yes. Towards consumers, no — there the statutory rates are ceilings that cannot be departed from to the customer's detriment.
Does a retention of title work on everything?
It works best on identifiable goods that have not been consumed or built into something else. A machine can be collected. Sand cast into a foundation cannot.
How to use it
Legal disclaimer. The template is generic and free to use. It is not legal advice and does not take account of the circumstances of your particular case. Rates, deadlines and statutory references change — check them before you use the document. If the claim is large, disputed or heading for court, call us before you send anything.