Borden (UK) Ltd v Scottish Timber Products Ltd [1981] Ch 25 is a judicial decision of the Court of Appeal of England and Wales relating to retention of title clauses, and the extent to which the vendor of raw material can seek to assert title to good into which those raw materials are subsequently worked.
The court held that when the relevant raw material was worked into another product it ceased to exist as a separate type of property, and accordingly it was no longer possible for a seller to retain title to it.
He considered carefully the earlier decision of Aluminium Industrie Vaassen BV v Romalpa Aluminium Ltd [1976] 1 WLR 676 in relation to retention of title, and the decision in Re Hallett's Estate (1880) 13 Ch D 696 in relation to the right to trace.
He held that the process of working the resin destroyed that product, and the title of any person which was vested in it.
If the seller of goods to a manufacturer, who knows that his goods are to be used in the manufacturing process before they are paid for wishes to reserve to himself an effective security for the payment of the price, he cannot rely on a simple reservation of title clause such as that relied upon by the plaintiffs.