1. Title of Goods:
a) Goods delivered to the customer under this contract shall remain the sole and absolute property of Prestige Yarns as legal and equitable owner until such time as the full price has been paid to the Prestige Yarns provided however that risk in the goods shall pass to the customer upon delivery to the customer or its agents or other person to whom Prestige Yarns has been authorised by the customer to deliver the goods.
b) The customer acknowledges that it is in possession of the goods solely as bailee and agent for the Prestige yarns on the terms and conditions hereof. The customer shall, if so instructed by Prestige Yarns, store the goods separately from the customers own goods or those of any other person and in a manner which makes them clearly identifiable as the goods of the Seller.
c) Upon the occurrence of any of the following events Prestige Yarns may (without prejudice to any of its rights and remedies) recover and resell goods which remain the property of the Prestige Yarns and may enter on the customers premises by its servants or agents for that purpose without notice to the customer.
i. If the customer fails to pay any amount to the Prestige Yarns when due under this contract or fails to pay any other indebtedness to the Prestige yarns when due: or
ii. Any other terms or condition of this contract is breached by the customer; or
iii. The customer makes an assignment for the benefit of its creditors generally or proposes or enters into a compromise, arrangement or scheme with or in favour of its creditors or any class of its creditors; or
iv. The customer ceases to or threatens to cease to carry on business or disposes or threatens to dispose of a substantial part of its business, property or assets without the prior consent of Prestige Yarns; or
v. A customer is made for the winding up of the customer and is not dismissed or withdrawn within 14 days or an order is made or an effective resolution is passed for the winding up of the customer (except in the course of a scheme of reconstruction or amalgamation previously approved by Prestige Yarns) or a receiver, receiver and manager, official manager, liquidator or other similar officer is appointed of the customer or of whole or a substantial part of its assets or any proceedings for such appointment are initiated (unless the proceedings are dismissed or withdrawn within 14 days of the commencement) or the customer is unable or deemed to be unable to pay its debts.
2. Miscellaneous Provisions
a) Unless otherwise agreed by Prestieg Yarns, payment of invoices is due on the date stipulated on the invoice. Accounts unpaid after that date will be liable to pay a service charge on the balance overdue. The rate of service charge will be determined by Prestige Yarns from time to time, and is presently set at 1.5% per month.
b) Should legal proceeding be required to enforce payment, the customer shall be liable for all costs expended in obtaining such payment, including collection agency commissions, search fees, court costs and solicitors fees and disbursements.
c) Prestige Yarns reserves the right to grant or refuse the customer for a credit facility and to terminate any credit agreement at any time.