Business entities operate on the market with the intention of making profit, and because of
that, their goal is to achieve high sales. But high sales do not also mean growth and existence
of a company. Because of economic crisis in the year of 2008, a number of businesses
collapsed, also because buyers of goods and services were unable to pay their financial
obligations to the sellers. Because the sellers did not secure their proceedings towards the
buyers, they could not recover them successfully. According to data by Agency of Republic of
Slovenia for public-law records and services (AJPES), 332 bankruptcy proceedings started in
2009 and also 269 erasures from the register. A year later, 510 bankruptcy proceedings began
and 291 erasures from registry were made. In 2011 these numbers got even higher – 675
receiverships started and there were 398 erasures from registry.
Because of that, it is necessary, that companies properly secure their proceedings. Retention
of title is a contractual article, which enables that obligational delivery of property and delivery
of title of that same property are time separated. The seller gives movable property in
possession to the buyer even before he paid the debt in full, and the seller retains the title
until debt is fully paid. Classical form of retention of title has some weaknesses, so this is why
german business practice developed special forms of retention of title as a response to these
weaknesses.
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