Last amended by Consumer Rights Act 2015 in 2015. Removed consumer contracts from the scope of the SGA 1979. The Act now applies primarily to business-to-business transactions.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
The Sale of Goods Act 1979 is the principal statute governing contracts for the sale of goods in England & Wales. It implies terms into sale contracts regarding title, description, quality, fitness for purpose, and sale by sample. While significantly amended (notably by the Sale and Supply of Goods Act 1994) and partially superseded for consumer contracts by the Consumer Rights Act 2015, it remains central to business-to-business sales.
Key Points
- Defines 'goods' and 'contract of sale' (s.2)
- Implies term that seller has right to sell (s.12)
- Goods must correspond with description (s.13)
- Goods must be of satisfactory quality (s.14(2))
- Goods must be fit for a particular purpose made known to seller (s.14(3))
- Goods sold by sample must correspond with sample (s.15)
- Rules on passing of property and risk (Part II)
- Buyer's right to reject goods and remedies for breach (Part V)
Parts & Sections
Amendments History
1994 — Sale and Supply of Goods Act 1994
Replaced the implied condition of 'merchantable quality' with 'satisfactory quality' in s.14(2). Introduced new criteria for assessing quality.
2002 — Sale and Supply of Goods to Consumers Regulations 2002
Implemented EU Directive on consumer sales, adding rights to repair or replacement for consumer buyers.
2015 — Consumer Rights Act 2015
Removed consumer contracts from the scope of the SGA 1979. The Act now applies primarily to business-to-business transactions.
Frequently asked questions
- What is the main purpose of the Sale of Goods Act 1979?
- The Sale of Goods Act 1979 is the main law governing contracts for selling goods in England and Wales. It sets out implied terms regarding title, description, quality, fitness for purpose, and sale by sample. Although it was amended by the 1994 Act and consumer contracts are now handled by the Consumer Rights Act 2015, it remains the central statute for business-to-business sales.
- What terms are automatically included in a sale of goods contract?
- The Act implies several conditions into sale contracts. These include that the seller has the right to sell the goods, the goods match their description, they are of satisfactory quality, they are fit for a particular purpose if made known to the seller, and goods sold by sample correspond with that sample. These terms apply specifically when goods are sold in the course of a business.
- Does the Sale of Goods Act 1979 still apply to consumer purchases?
- The Consumer Rights Act 2015 removed consumer contracts from the scope of the Sale of Goods Act 1979. Consequently, the 1979 Act now applies primarily to business-to-business transactions. For consumer purchases, the 2015 Act governs the rights and obligations, while the 1979 Act continues to regulate sales between businesses.
- How did the 1994 Act change the quality requirements for goods?
- The Sale and Supply of Goods Act 1994 replaced the old implied condition of 'merchantable quality' with 'satisfactory quality'. It introduced new criteria for assessing quality, which include fitness for purpose, appearance, freedom from minor defects, safety, and durability. This change updated the standards used to determine if goods meet legal requirements.
- How is a contract for the sale of goods formed?
- A contract of sale can be formed in writing, by word of mouth, partly in writing and partly by word of mouth, or implied from conduct. The price may be fixed by the contract, determined by a course of dealing, or set at a reasonable price if not otherwise agreed. Capacity to contract is governed by general law, with specific rules for necessaries sold to minors.
- What is the difference between a sale and an agreement to sell?
- The Act distinguishes between a 'sale' and an 'agreement to sell'. In a sale, the property in the goods transfers immediately to the buyer. In an agreement to sell, the property transfers at a future time or is subject to certain conditions. This distinction is important for understanding when ownership and risk pass from seller to buyer.