insolvency and reservation of ownership
Posted 1 July 2006

If a builder has reserved ownership in materials or goods supplied to the building owner in terms of the building contract, until the goods have been paid for in full, the builder is entitled to claim the goods back if the owner should be liquidated before completion of the works.

In PELLOW NO AND ANOTHER v CLUB REFRIGERATION CC 2006 (1) SA 230 (SCA) the court held that the effect of the reservation of ownership clause had indeed been to reserve to the respondent ownership in the  goods supplied by it to the employer until it was paid.