Scope of Application of the Sale of Goods Act

The Sale of Goods Act regulates the sale of goods and the barter of goods, where applicable.

The Act does not apply to a contract for the construction of a building or to a conveyance of a building on the land of a third person, if the lease of the land is transferred simultaneously. Furthermore, the Act does not apply for the supply of goods to be manufactured or produced if the ordering party undertakes to supply a substantial part of the materials needed for the manufacture or production.

The Sale of Goods act does not apply to a contract under which the supplier undertakes also to perform work or other services, if the services constitute the main part of the obligations of the supplier.

The provisions of the Sale of Goods Act are subject to provisions of the Consumer Protection Act. For further information on the consumer contracts, see paragraph [7.4 Consumer Trade and Consumer Service Contracts].

The Sale of Goods Act is a non-mandatory law i.e. parties to an agreement may agree on exceptions to the provisions of the Act. The provisions of the Act are also subject to any commercial practice of the branch of business or practice established between the parties.