Section 5 | Sales contracts

(1)A contract is a sales contract if under it—

(a)the trader transfers or agrees to transfer ownership of goods to the consumer, and

(b)the consumer pays or agrees to pay the price.

(2)A contract is a sales contract (whether or not it would be one under subsection (1)) if under the contract—

(a)goods are to be manufactured or produced and the trader agrees to supply them to the consumer,

(b)on being supplied, the goods will be owned by the consumer, and

(c)the consumer pays or agrees to pay the price.

(3)A sales contract may be conditional (see section 3(5)), but in this Part “conditional sales contract” means a sales contract under which—

(a)the price for the goods or part of it is payable by instalments, and

(b)the trader retains ownership of the goods until the conditions specified in the contract (for the payment of instalments or otherwise) are met;

and it makes no difference whether or not the consumer possesses the goods.