# Late Payment of Commercial Debts (Interest) Act 1998, Section 2: Contracts to which Act applies.

Extent: E+W+S+N.I.

(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.
(2) In this Act “contract for the supply of goods or services” means—
(a) a contract of sale of goods; or
(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.
(3) Those things are—
(a) transferring or agreeing to transfer to another the property in goods;
(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
(c) agreeing to carry out a service.
(4) For the avoidance of doubt a contract of service or apprenticeship is not a contract for the supply of goods or services.
(5) The following are excepted contracts—
(a) a consumer credit agreement;
(b) a contract intended to operate by way of mortgage, pledge, charge or other security; and
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) In this section—
“business” includes a profession and the activities of any government department or local or public authority;
“consumer credit agreement” has the same meaning as in the Consumer Credit Act 1974;
“contract of sale of goods” and “goods” have the same meaning as in the Sale of Goods Act 1979;
“government department” includes any part of the Scottish Administration;
“property in goods” means the general property in them and not merely a special property.

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Source: https://www.legislation.gov.uk/ukpga/1998/20/section/2 (the official version)
Page: https://openlegislation.uk/late-payment-of-commercial-debts-interest-act-1998/section-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.