Business Work
CUFS16 (January 2012)
SALE OF GOODS LAW
Businesses as well as consumers are usually free to enter into contracts on whatever terms they see fit to agree. However, contracts involving sales of goods can be subject to a range of statutory provisions. Consumers have greater protection than buyers who are ‘dealing in the course of a business’. ‘Let the buyer beware’ or ‘caveat emptor’ does not apply to all transactions and anyone selling goods in the course of a business to consumers should be aware that the law will imply certain terms into all such transactions.
Consumers are defined as people who are buying for purposes not related to their trade, business or profession.
1. Legislation
The Sale and Supply of Goods Act 1994 introduced significant changes to areas formerly covered by the Sale of Goods Act 1979, the Supply of Goods (Implied Terms) Act 1973, and the Supply of Goods and Services Act 1982. However, the 1979 Act, as amended, remains the bedrock of our sale of goods law. General sale of goods law is discussed in this fact sheet.
Our fact sheet on Sale of Goods Law (Consumer Protection) deals with legislation that is specifically designed to protect buyers who are consumers. This includes the Unfair Terms in Consumer Contracts Regulations 1999, the Consumer Protection (Distance Selling) Regulations 2000, the Sale and Supply of Goods to Consumers Regulations 2002 and the Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) Regulations 1987.
2. Implied Terms
The terms implied into most sales of goods contracts are found in sections 12–15 of the 1979 Act. Broadly speaking, they are:
Section 12: Title – The general rule is that a seller must have good title, that is to say, ownership and the right to sell the goods they are selling. If the goods are stolen, the seller will not have the right to sell them and the buyer will not obtain ‘good title’. In such a situation the buyer might
SALE OF GOODS LAW
Businesses as well as consumers are usually free to enter into contracts on whatever terms they see fit to agree. However, contracts involving sales of goods can be subject to a range of statutory provisions. Consumers have greater protection than buyers who are ‘dealing in the course of a business’. ‘Let the buyer beware’ or ‘caveat emptor’ does not apply to all transactions and anyone selling goods in the course of a business to consumers should be aware that the law will imply certain terms into all such transactions.
Consumers are defined as people who are buying for purposes not related to their trade, business or profession.
1. Legislation
The Sale and Supply of Goods Act 1994 introduced significant changes to areas formerly covered by the Sale of Goods Act 1979, the Supply of Goods (Implied Terms) Act 1973, and the Supply of Goods and Services Act 1982. However, the 1979 Act, as amended, remains the bedrock of our sale of goods law. General sale of goods law is discussed in this fact sheet.
Our fact sheet on Sale of Goods Law (Consumer Protection) deals with legislation that is specifically designed to protect buyers who are consumers. This includes the Unfair Terms in Consumer Contracts Regulations 1999, the Consumer Protection (Distance Selling) Regulations 2000, the Sale and Supply of Goods to Consumers Regulations 2002 and the Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) Regulations 1987.
2. Implied Terms
The terms implied into most sales of goods contracts are found in sections 12–15 of the 1979 Act. Broadly speaking, they are:
Section 12: Title – The general rule is that a seller must have good title, that is to say, ownership and the right to sell the goods they are selling. If the goods are stolen, the seller will not have the right to sell them and the buyer will not obtain ‘good title’. In such a situation the buyer might