TRADE SALES – Where do you stand?

It is a common grey area, as to what constitutes a ‘Trade Sale’.  Trade sales can only be made to persons who are not a consumer.  The Unfair Contract Terms Act defines a consumer as follows; 

“12“Dealing as a consumer”.

(1)  A party to a contract “deals as consumer” in relation to another party if—
(a)  he neither makes the contract in the course of a business nor holds himself out as doing so; and
(b)  the other party does make the contract in the course of a business; and
(c)  in the case of a contract governed by the law of sale of goods or hire-purchase, or by section 7 of this Act, the goods passing under or in pursuance of the contract are of a type ordinarily supplied for private use or consumption.”

As such only if a purchaser of the vehicle is a business, purchasing a vehicle for business purposes, i.e. A fellow motor trader purchasing a vehicle to sell on at a later date, or a business buying a company vehicle can the sale be classed as a Trade Sale. 

As such it is prudent to protect yourself by using a Trade Sale Invoice, specifically making the purchaser aware that they are purchasing the vehicle under these terms. The Invoice should have a clear description of what is meant by a trade sale and a disclaimer, symbolising the purchaser’s agreement that they are eligible for a Trade Sale.  

See Lawgistics Trade Sale Invoice stationary pads, but remember these pads can not be used for consumer sales. 

Published: 11 Jun 2012

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