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2Contracts to which Act applies

(1)    This Act applies to a contract for the supply of goods or services where the purchaser and the supplier are each acting in the course of a business, other than an excepted contract.

(2)    In this Act “contract for the supply of goods or services” means—

(a)    a contract of sale of goods; or

(b)    a contract (other than a contract of sale of goods) by which a person does any, or any combination, of the things mentioned in subsection (3) for a consideration that is (or includes) a money consideration.

(3)    Those things are—

(a)    transferring or agreeing to transfer to another the property in goods;

(b)    bailing or agreeing to bail goods to another by way of hire or, in Scotland, hiring or agreeing to hire goods to another; and

(c)    agreeing to carry out a service.

(4)    For the avoidance of doubt a contract of service or apprenticeship is not a contract for the supply of goods or services.

(5)    The following are excepted contracts—

(a)    a consumer credit agreement;

(b)    a contract intended to operate by way of mortgage, pledge, charge or other security; and

(c)    a contract of a description specified in an order made by the Secretary of State.

(6)    An order under subsection (5)(c) may specify a description of contract by reference to any feature of the contract (including the parties).

(7)    In this section—

“business” includes a profession and the activities of any government department or local or public authority;

“consumer credit agreement” has the same meaning as in the Consumer Credit Act 1974;

“contract of sale of goods” and “goods” have the same meaning as in the Sale of Goods Act 1979;

“property in goods” means the general property in them and not merely a special property.

NOTES
Initial Commencement
To be appointed

To be appointed: see s 17(2).

Creation of Contract93 Contract Law92 Sale of Goods92 Contract for Sale of Goods92 Consumer Law92 Banking & Finance Law93 Commercial Law92 Security Relating to Consumer Credit95 Consumer Credit93 Lending & Security93 Consumer Credit Agreements97

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