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Part VIIU.K. Supplementary

61 Interpretation.U.K.

(1)In this Act, unless the context or subject matter otherwise requires,—

(2)As regards Scotland a breach of warranty shall be deemed to be a failure to perform a material part of the contract.

(3)A thing is deemed to be done in good faith within the meaning of this Act when it is in fact done honestly, whether it is done negligently or not.

(4)A person is deemed to be insolvent within the meaning of this Act if he has either ceased to pay his debts in the ordinary course of business or he cannot pay his debts as they become due, [F1whether he has committed an act of bankruptcy or not,][F2and whether he has become a notour bankrupt or not].

(5)Goods are in a deliverable state within the meaning of this Act when they are in such a state that the buyer would under the contract be bound to take delivery of them.

(6)As regards the definition of “business” in subsection (1) above, paragraph 14 of Schedule 1 below applies in relation to a contract made on or after 18 May 1973 and before 1 February 1978, and paragraph 15 in relation to one made before 18 May 1973.