A legal point worthy of consideration

Did you know that if a car dealer simply swaps or exchanges a car with a customer, with no actual cash (or other forms of money payment) being paid by the customer for the swap, the Sale of Goods Act doesn’t apply?

This is because there is no actual “sale”.  Under the Sale of Goods Act, the customer needs to pay at least something by means of “money consideration”.  Consideration is the legal term given to the “something of benefit” that each party must give to each other in order for there to be a legally binding contract – well not always but that’s not important here.

As there is no “money” being given, the consumer buyer gets alternative protection via the Supply of Goods and Services Act 1982 but those rights do not protect the consumer to the same extent as the Sale of Goods Act but we won’t bore you with the details as to why!

Published: 29 Apr 2013

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