Sales Contracts

A sales contract is the most common type of goods contract covered by the Consumer Rights Act 2015.

To see how this fits within the wider legal framework for goods, see What Goods Contracts Are Covered?.

What Is a Sales Contract?

A sales contract is an agreement where a trader transfers ownership of goods to a consumer in exchange for a price. The price is usually money, but it must be agreed as part of the contract.

This includes purchases made:

• In a shop.
• Online.
• By telephone.
• Through distance selling platforms.

When Does Ownership Transfer?

Ownership passes when the parties intend it to. For goods that are ready for delivery this is often when the contract is made, unless the contract says otherwise. Separately, the goods remain at the trader’s risk until they come into your physical possession.

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

How Is It Different from Other Goods Contracts?

A sales contract differs from:

• Hire of Goods – where you pay to use goods but ownership does not transfer.
• Hire-Purchase Agreements – where there is a hire period before ownership transfers.
• Contract for Transfer of Goods – where ownership transfers but not necessarily in exchange for a traditional price.

What Rights Apply Under a Sales Contract?

Under a sales contract, goods must meet the statutory standards set out in the Consumer Rights Act 2015.

They 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 by contract.

Why Identifying a Sales Contract Matters

Identifying the correct type of contract helps determine:

• When ownership transfers.
• Which financial regulations may apply.
• How remedies operate if goods are faulty.

However, the core statutory protections apply to all covered goods contracts.