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10 years 7 months ago #34 by goldman
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.

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10 years 7 months ago #36 by David J
Replied by David J on topic Re: business to individuals
Hello
An interesting question!

The Late Payment of Commercial Debts (Interest) Act only applies business to business. It does not cover a business providing goods or services to an individual.

David

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10 years 7 months ago #38 by goldman
Replied by goldman on topic Re: business to individuals
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.

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10 years 7 months ago #39 by David J
Replied by David J on topic Re: business to individuals
If the individual was a sole trader and they used a business cheque or business credit card to pay for the goods or services then the Act would apply. A sole trader is classed as a business.

That could apply to a purchase of a TV for the business or to a private doctor doing a job related medical test.

If it was for personal use, then no.


David

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10 years 7 months ago #46 by office@adminandsupportservices.co.uk
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:

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http://www.opsi.gov.uk/acts/acts1998/ukpga_19980020_en_1#pt1-l1g2


Philip

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10 years 7 months ago #48 by goldman
Replied by goldman on topic Re:business to individuals
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.

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