§ Mr. Nicholas WintertonTo ask the President of the Board of Trade, pursuant to his answer of 22 June,Official Report, column 231, on what basis he has formed the view that the European directive on unfair consumer contracts does not apply to the sale of real property; what steps he has taken to ensure that this is the view of the European Commission and the European court; and what assistance and support is available to any British company required to defend an action in Europe seeking to apply the directive to real property.
§ Mr. McLoughlin[holding answer 1 July 1994]: The recitals to the directive make it clear that the intention is to prevent the use of unfair terms in contracts for the sale or supply of goods or services. Since real property is neither a good nor a service the presumption must be that the scope of the directive does not extend to transactions in real property, but it would be for the courts, if necessary, to rule on whether a particular contract term fell within the scope of the Directive. Any dispute must be settled by the parties to that dispute.
§ Mr. Nicholas WintertonTo ask the President of the Board of Trade, pursuant to his answer of 22 June,Official Report, column 231, if he will make a statement setting out precisely his understanding of the term "goods" in connection with the European directive on unfair consumer contracts.
§ Mr. McLoughlin[holding answer 1 July 1994]: The term goods is not defined in the Unfair Contract Terms Directive. In the United Kingdom goods are generally taken to mean moveable as opposed to fixed property. It would be for the courts, if necessary, to interpret the terms used in the directive.