Independent report

Consumer sales contracts: transfer of ownership

A report with draft legislation which would implement recommendations made in July 2016 to modernise the rules on when consumers acquire ownership of goods under sales contracts.

Applies to England and Wales

Documents

Consumer sales contracts: transfer of ownership

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Details

The Law Commission published a draft Bill that would introduce new rules into the Consumer Rights Act 2015 about the transfer of ownership under contracts for the sale of goods between a trader and a consumer.

The final draft Bill would introduce new rules into the Consumer Rights Act 2015 around the transfer of ownership under contracts for the sale of goods between a trader and a consumer. The changes include:

  • New rules: Different rules would apply, depending on the type of good in question. For example, for a good bought in a physical store, the contract is made when the good is purchased. For a generic item bought online, there are a range of points which could trigger the contract of sale.
  • Modernised language: Consumer focused language that is less likely to be misinterpreted would be included. For example, the new rules refer to “trader” and “consumer” (rather than “buyer” and “seller”).
  • Mandatory rules: Once implemented, the rules in the draft Bill would become mandatory, nullifying the effect of any contract where ownership of the goods is transferred over at a later point in the process.

Find out more on the Law Commission website.

Updates to this page

Published 23 April 2021

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