{
  "url": "https://openlegislation.uk/late-payment-of-commercial-debts-interest-act-1998/section-2",
  "json_url": "https://openlegislation.uk/late-payment-of-commercial-debts-interest-act-1998/section-2.json",
  "legislation": "ukpga/1998/20",
  "legislation_title": "Late Payment of Commercial Debts (Interest) Act 1998",
  "legislation_url": "https://openlegislation.uk/late-payment-of-commercial-debts-interest-act-1998",
  "path": "section/2",
  "kind": "section",
  "number": "2",
  "heading": "Contracts to which Act applies.",
  "text": "(1) 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, other than an excepted contract.\n(2) In this Act “contract for the supply of goods or services” means—\n(a) a contract of sale of goods; or\n(b) a contract (other than a contract of sale of goods) by which a person does any, or any combination, of the things mentioned in subsection (3) for a consideration that is (or includes) a money consideration.\n(3) Those things are—\n(a) transferring or agreeing to transfer to another the property in goods;\n(b) bailing or agreeing to bail goods to another by way of hire or, in Scotland, hiring or agreeing to hire goods to another; and\n(c) agreeing to carry out a service.\n(4) For the avoidance of doubt a contract of service or apprenticeship is not a contract for the supply of goods or services.\n(5) The following are excepted contracts—\n(a) a consumer credit agreement;\n(b) a contract intended to operate by way of mortgage, pledge, charge or other security; and\n(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(7) In this section—\n“business” includes a profession and the activities of any government department or local or public authority;\n“consumer credit agreement” has the same meaning as in the Consumer Credit Act 1974;\n“contract of sale of goods” and “goods” have the same meaning as in the Sale of Goods Act 1979;\n“government department” includes any part of the Scottish Administration;\n“property in goods” means the general property in them and not merely a special property.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "S. 2(5)(c) repealed (7.8.2002) by S.S.I. 2002/335, reg. 2(2) (with reg. 4)S. 2(5)(c),(6) repealed (7.8.2002) by S.I. 2002/1674, reg. 2(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "S. 6 repealed (7.8.2002) by S.S.I. 2002/335, reg. 2(2) (with reg. 4)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Definition in s. 2(7) inserted (1.7.1999) by S.I. 1999/1820, art. 4, Sch. 2 Pt. I para. 132"
    },
    {
      "type": "M",
      "label": "M1",
      "text": "1974 c. 39."
    },
    {
      "type": "M",
      "label": "M2",
      "text": "1979 c. 54."
    },
    {
      "type": "I",
      "label": "I1",
      "text": "S. 2 fully in force; s. 2 not in force at Royal Assent see s. 17(2); s. 2 in force for specified purposes: at 1.11.1998 by S.I. 1998/2479, art. 3; at 1.7.1999 by S.I. 1999/1816, art. 3; at 1.9.2000 by S.I. 2000/2225, art. 3(1), Sch.; at 1.11.2000 by S.I. 2000/2740, art. 3(1); S. 2 in force (E. W. NI.) in so far as not already in force at 7.8.2002 by S.I. 2002/1673, art. 2; S. 2 in force (S.) in so far as not already in force at 7.8.2002 by S.S.I. 2002/337, art. 2"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1998/20/section/2",
    "retrieved_at": "2026-10-29T09:22:57.968528+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}