A contract for transfer of goods is one of the four types of goods contract covered by the Consumer Rights Act 2015.

To see how this fits within the wider structure of goods contracts, see What Goods Contracts Are Covered?.

What Is a Contract for Transfer of Goods?

This type of contract applies where ownership of goods transfers from a trader to a consumer, but not necessarily in exchange for a traditional “price”.

It covers situations where goods are supplied in return for something other than straightforward payment.

How Is It Different from a Sales Contract?

Under a Sales Contract, goods are transferred in exchange for a price (usually money).

A contract for transfer of goods may involve different forms of consideration, but ownership still passes from the trader to the consumer.

When Does Ownership Transfer?

Ownership transfers according to the terms of the contract.

Once ownership passes, the consumer has legal title to the goods.

For more detail on legal title and transfer of ownership, see Ownership of Goods.

What Rights Apply?

Where a contract falls within this category, the same statutory standards apply as with other goods contracts.

The goods must:

  • Be of satisfactory quality.
  • Be fit for purpose.
  • Be as described.
  • Match any sample or model.

These rights apply automatically and cannot be excluded.

How Does This Differ from Hire-Purchase?

Under Hire-Purchase Agreements, the consumer hires the goods and ownership transfers only after certain conditions are met, usually after all instalments are paid.

In a contract for transfer of goods, ownership transfers according to the agreed terms without the hire phase that characterises hire-purchase.

Why This Category Matters

The Consumer Rights Act 2015 applies only to specific types of goods contract. Identifying the correct category ensures that the correct statutory protections apply.