TRADE SALES – Where do you stand?

legal_updates

It is prudent to protect yourself by using a Trade Sale Invoice,

Author: Dennis Chapman
Published:
Reading time: 2 minutes

This article is 10 years old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

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. 

Dennis Chapman

In remembrance of Dennis Chapman 1951 -2015

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.