business to individuals

What are your views on whether the ACT applies to businesses trading with individuals who have not indicated that they are trading as sole practitioners or partners in a business. So for example can a private doctor add stat interest on a patient's a/c? If an individual buys a tv on credit from a shop can the shop add stat interest? In both cases assume there is no T&C's.

Thanks David. Yes I thought that might be the answer. Of course "individuals" can also be a business when they are a sole practitioner. But an individual who does not dislose the nature of his "purchase" must be presumed to be buying on a personal basis. I must admit that I have overlooked this distinction in the past.

With a few (complicated) variations, the legislation states that "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".

Whether either (or both) businesses are a sole trader is not relevant, as long as the transaction was in the course of a business.

For full details read the legislation at: www.opsi.gov.uk/acts/acts1998/ukpga_19980020_en_1#pt1-l1g2


Philip

No need to quote from the Act thanks. I have read and re-read it. I have had my doubts but I believe the position stated by David above to be correct. An individual cannot be acting in the course of a business if he/she is not in business. The transaction may be a business transaction but the act does not refer to business transactions as such or to "in the course of a business transaction".

So an individual can only be acting in the course of a business if in fact he/she is in business and that is only possible if the person is either a sole trader, a partner, or representing a body corporate.