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The Sale of Goods Act (SGA) and Consumer Rights Act (CRA) ( commercial law - concept 4 )

 

When talking about contracts for the sale of goods, it’s important to know the key laws that govern these agreements. Two of the most important laws are the Sale of Goods Act 1979 (SGA) and the more recent Consumer Rights Act 2015 (CRA), which influence many jurisdictions worldwide, not just the UK.


What is the Sale of Goods Act (SGA)?

  • The SGA is a law that consolidates and organizes rules about contracts for selling goods.

  • It’s not entirely new but brings together older laws dating back to the 19th century.

  • The law sets out clear rights and duties between sellers and buyers.

  • Although it originated in the UK, many countries with similar legal systems base their laws on comparable principles.


How is the SGA interpreted?

  • The words of the law should be understood in their natural, plain meaning.

  • The law is presumed to bring together existing rules rather than radically change them.

  • Courts often refer to past cases to clarify the law’s meaning.

  • The law adapts to modern business practices and technology to avoid becoming outdated.


The Consumer Rights Act (CRA): The new law for consumers

  • The CRA, effective since 2015, created a separate legal regime to protect consumers (people buying for personal use, not business).

  • It covers not only goods but also services and digital content.

  • The CRA provides stronger protections and remedies for consumers than the SGA, which mainly applies to business-to-business sales.

  • Despite being new, the CRA relies heavily on SGA case law to maintain consistency.


Why does this matter?

  • Although these laws are British in origin, their core principles are reflected in many legal systems worldwide, especially in common law countries.

  • Understanding these laws helps you know your rights and responsibilities in sales contracts wherever you live.

  • Knowing how courts interpret these laws helps in resolving commercial disputes or problems with purchases.


 To sum up:

  • The SGA is the historic law governing sales of goods between businesses.

  • The CRA is the newer law protecting consumers.

  • Both are based on reason, clarity, and adapting to modern commerce.

Which law primarily protects consumers when buying goods, services, or digital content for personal use?
Consumer Rights Act 2015 (CRA)
Sale of Goods Act 1979 (SGA)
Common Law 1880
Trade Regulations Act

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