Q&As

Is bespoke software developed for a customer a ‘good’ for the purpose of the Sale of Goods Act 1979?

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Published on LexisPSL on 20/11/2017

The following TMT Q&A provides comprehensive and up to date legal information covering:

  • Is bespoke software developed for a customer a ‘good’ for the purpose of the Sale of Goods Act 1979?

Software can be broadly defined as a computer program comprising a series of instructions which, in combination with the underlying hardware and inputs from an end user, allow or cause a computer to perform a specific operation. Custom software (also referred to as ‘tailormade’ or ‘bespoke’ software) is software that has been specifically developed to meet the needs and requirements of an individual customer. There remains some uncertainty in business-to-business contracts as to whether software constitutes goods or services for the purposes of a number of pieces of legislation including the Sale of Goods Act 1979, the Supply of Goods and Services Act 1982 and others.

The categorisation is relevant for a number of reasons

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