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Contracts for Your Business: A straightforward guide to contracts and legal agreements by Charles Boundy

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Chapter 4. Selling Goods

4.1 How do I distinguish goods from services?

Goods, services or both? – Most business contracts involve selling goods or providing services of some kind. Obviously goods are generally physical and services non-physical (or intangible), but this distinction is becoming more problematic. Take two examples:

  • Digital entertainment products – Here content is held digitally and the product may be available either in physical form (such as CD or DVD) or downloaded from an internet supplier. Both ultimately give the consumer access to the same content, but CDs/DVDs are technically goods and downloads are services. Sometimes there may be different sales tax/VAT treatment, as with books in the UK, zero-rated in physical ...

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