Consumer Advice for Sole Traders and Partnerships
If a business (sole traders and partnerships) enters in to a consumer contract for the purchase of goods or services as a business, remember to check the terms and conditions of trading. As a business, although you have the same implied rights as a consumer, those rights can be excluded or limited.
Therefore, although in consumer contracts a trader cannot
exclude any terms set out in the Sale of Goods Act, Supply of Goods
and Services Act and all terms will be subject to the Unfair Terms
in Consumer Contracts Regulations, check the small print to see
what is excluded and what liabilities have been restricted.
However, a commercial contract (business to business) can exclude
or restrict liability for providing goods of a satisfactory quality
or goods which are described if the term is reasonable.
Likewise, a business can exclude or restrict liability for breach
of contract and can even allow to provide an inadequate service if
the business can show that the exclusion/restriction is
reasonable. What is reasonable is something that only a court
can decide.
The only term a commercial contract cannot exclude liability for is death or personal injury resulting from negligence.
The reason for the difference is that commercial contracts between businesses can be agreed between the parties on the terms that they wish, however consumers do not have such a choice so are given greater legal protection.