A credit application signed by a buyer is an offer, not a binding contract; the contract is formed when the seller first supplies goods on credit, accepting the offer by conduct. Where the credit application refers to the seller's standard terms and conditions, and those terms include a retention of title clause, the resulting supply agreement 'provides for the granting of' security interests in future supplies, qualifying as a transitional security agreement under ss 307-308 of the PPSA. Suppliers with pre-commencement credit arrangements incorporating ROT clauses may enforce those clauses against liquidators without PPSA registration, provided the arrangement satisfies the transitional provisions.
The full text is available to signed-in members, including the 7 later cases that cite this judgment.
1 of the 7 citing cases carry a classified treatment. How each court treated it is available to signed-in members.