Part 10A company’s directors

Chapter 4Transactions with directors requiring approval of members

Loans, quasi-loans and credit transactions

202Meaning of “credit transaction”

1

A “credit transaction” is a transaction under which one party (“the creditor”)—

a

supplies any goods or sells any land under a hire-purchase agreement or a conditional sale agreement,

b

leases or hires any land or goods in return for periodical payments, or

c

otherwise disposes of land or supplies goods or services on the understanding that payment (whether in a lump sum or instalments or by way of periodical payments or otherwise) is to be deferred.

2

Any reference to the person for whose benefit a credit transaction is entered into is to the person to whom goods, land or services are supplied, sold, leased, hired or otherwise disposed of under the transaction.

3

In this section—

  • “conditional sale agreement” has the same meaning as in the Consumer Credit Act 1974 (c. 39); and

  • “services” means anything other than goods or land.