Sale of Goods and Supply of Services

When a business exports goods or provides services in England and Wales, it must comply with England and Wales consumer protection laws. Much of this legislation is broadly similar to Irish legislation for historical reasons and by reason of common EU requirements.

 

A business which exports to or operates in England and Wales can gain considerable advantage by drafting its own standard sale and supply contracts. An important issue in business contracts is the extent to which it is possible to choose the jurisdiction whose laws will apply.

 

There are default rules in supply contracts under the Sale of Goods Act which may or may not be appropriate to the business's particular circumstances. It is usually desirable to change some of these default rules so that they are more favourable to the exporter or seller. For example, a retention of title clause is desirable so as to prevent ownership of goods passing to the buyer until the purchase price has been paid.

 

There are certain rights under the Sale of Goods Act and the Unfair Contracts legislation which cannot be avoided, particularly in sales to private customers. Irrespective of what a sale contract might state, the consumer protection rights apply. It is possible to vary these rights to a greater extent in business to business contracts. The standard consumer sale contract and standard business supply contracts should be drafted in this context.

 

Unfair contract terms are void and of no effect. The Office of Fair Trading deals with unfair practices and has published a number of codes of practice. Consumer credit contracts are subject to special restrictions, terms and conditions.

 

Regulations have been recently introduced in relation to advertising standards and unfair commercial practices. False trade descriptions can have a criminal consequences. The Office of Fair Trade can bring prosecutions in respect of a range of breaches and infringements.

 

There are many general rules which apply to the sale of goods and supply of services. There are general product safety rules. The European Union has harmonised many product standards. There are also common EU wide in relation to liability for defective products.

 

Special considerations arise with manufacturer’s guarantees, distance sales and doorstop sales. Some products have Packaging labelling and price labelling requirements. Many of the rules have been harmonised across the EU.