Under what conditions can Engel & Volkers demand immediate release of delivered goods from the Purchaser?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) In the event of culpable delay, any purchase price installments, which are still outstanding, shall fall due immediately. Insofar as the Purchaser has suffered a deterioration in assets, in particular in the event of a suspension of payments or an application being made to open court composition or bankruptcy proceedings, we shall have the option of retention or withdraw from the contract with immediate effect. In the last instance, we shall have the right to demand the immediate release of the goods, which have been delivered, from the Purchaser and to collect these from the latter or arrange for these to be collected by an agent.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers can demand the immediate release of delivered goods from the purchaser under specific circumstances related to the purchaser's financial stability.
Specifically, if the purchaser experiences a deterioration in their assets, such as a suspension of payments or the filing of court composition or bankruptcy proceedings, Engel & Volkers has the option to withdraw from the contract immediately. In this case, Engel & Volkers has the right to demand the immediate release of delivered goods from the purchaser and can collect these goods themselves or through an agent.
This clause protects Engel & Volkers from potential losses if a purchaser's financial situation becomes unstable after goods have been delivered but before payment is received. It allows Engel & Volkers to reclaim the goods to mitigate financial risk. This is a fairly standard practice in commercial contracts to protect the seller's interests in case of buyer insolvency.
A prospective Engel & Volkers franchisee should be aware of these conditions, as they outline the circumstances under which Engel & Volkers can reclaim delivered goods. It is important to maintain financial stability to avoid triggering this clause and potentially losing access to the goods. Franchisees should also understand their rights and obligations in such a scenario, including the process for releasing the goods and any associated costs.