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2017-01-14 10:46:55

Transfer of ownership under French law

In an international sale of goods GPC of a buyer based out of France, the transfer of title to products sold is as per French laws. Shall be grateful if anyone could throw light on the repercussions of accepting such clause.
 •  Seiersen Enterprises  •   2017-01-14 11:03:42
Perhaps you could ask for INCOTERMS that are universally accepted, and probe why not if they refuse.
 •   2017-01-16 10:34:28
Title to the goods would pass very early - before the goods have been delivered or paid for. (Link to source info below)

The significance of this is that you would have great difficulty in recovering the goods if the buyer becomes insolvent, and would have little leverage if they fail to pay. Normally it is in the seller's interest for title to be retained for as long as possible.

 •   2017-01-19 11:24:00
The EU introduced the Late Payment Directive concerning commercial late payments
It required member states to enact its provisions in national legislation by 16 March 2013 and applies to all member states.

The directive aims to achieve 'a decisive shift to a culture of prompt payment' and requires debtors to pay interest and the reasonable recovery costs of the creditor if they do not pay for goods or services on time. The limits are within 60 days for businesses and within 30 days for public authorities.

Therefore this directive implies that the timing of title passing is not such a concern because you essentially retain a 'security interest' until paid.
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