Legal Article - Business Law

What is the Sale or Return Agreement?

Often forecourts are stocked on a 'sale or return' basis either with customers or fellow motor dealers. In such circumstances the person on whose forecourt the vehicle appears is jointly and severally liable for any misdescription.

In the event that the vehicle is a customer's vehicle and the customer misdecribes the vehicle the dealer may be in the unfortunate position whereby he becomes liable while the customer, not being in a trade or business, is not.

Any SOR should be strictly controlled and any agreement put in writing.

Published: 16 Mar 2011


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