Curtain Dream Plc v. Churchill Merchanting Ltd.

The rigours of the modern economic climate necessitate that the prudent commercial trader maintains effective security for his business operations. English law has readily succumbed to these pressures and provides a myriad of security forms. One such security was attempted in Curtain Dream Plc v. Churchill Merchanting Ltd.,1 where the “old”2 method of an absolute conveyance of the proprietary interest by way of sale coupled with the now ubiquitous retention of title clause3 was used to secure a loan transaction. Such covert security mechanisms are necessary due to the restrictive conditions which are inserted into security agreements as a matter of course these days. These effectively prevent any second chargee from acquiring any interest in priority to the first security holder, forcing the chargor into increasingly novel methods of evading such restrictions in order to raise finance. The present