Part I Statutory Interest on Qualifying Debts

2 Contracts to which Act applies.

(1)

This Act applies to a contract for the supply of goods or services where the purchaser and the supplier are each acting in the course of a business, other than an excepted contract.

(2)

In this Act “contract for the supply of goods or services” means—

(a)

a contract of sale of goods; or

(b)

a contract (other than a contract of sale of goods) by which a person does any, or any combination, of the things mentioned in subsection (3) for a consideration that is (or includes) a money consideration.

(3)

Those things are—

(a)

transferring or agreeing to transfer to another the property in goods;

(b)

bailing or agreeing to bail goods to another by way of hire or, in Scotland, hiring or agreeing to hire goods to another; and

(c)

agreeing to carry out a service.

(4)

For the avoidance of doubt a contract of service or apprenticeship is not a contract for the supply of goods or services.

(5)

The following are excepted contracts—

(a)

a consumer credit agreement;

(b)

a contract intended to operate by way of mortgage, pledge, charge or other security; and

F1(c)

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F2(6)

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(7)

In this section—

“business” includes a profession and the activities of any government department or local or public authority;

“consumer credit agreement” has the same meaning as in the M1Consumer Credit Act 1974;

“contract of sale of goods” and “goods” have the same meaning as in the M2Sale of Goods Act 1979;

F3“government department” includes any part of the Scottish Administration;

“property in goods” means the general property in them and not merely a special property.