Download Contracts Away From Trade Premises

Contracts entered into away from Trader Premises
Terms
Distance Selling/Communication – this is where a
contract is entered into and completed by telephone, email,
internet, mail order (postal) etc, where the parties to the
contract do not meet face to face.
What does it cover?
When a contract is entered into on a Trader’s premises, there is not an
automatic ‘cooling off’ period or opportunity to change your mind once a
contract has been signed, unless it is stated in the terms of the contract.
However, when you enter into a contract away from the Trader’s premises,
consumers sometimes have the right to a ‘cooling off’ period and to be able to
change their mind under the Consumer Contracts (Information, Cancellation
and Additional Charges) Regulations 2013. There are some exemptions to
contracts that do not have cooling off periods such as package travel
holidays, perishable goods, personalised items etc.
Distance Contracts
If you order goods or services via distance communication,
you have 14 days to cancel the contract. The Trader also
needs to provide you with written information, telling you that
you have the right to cancel and providing consumers with
certain information, such as pricing and any additional costs
and a full and accurate description of the goods. If this
information is not supplied, the consumer may have up to 12 months to cancel
the contract and the Trader may have breached the Enterprise Act 2002,
which we will learn about later in the pack.
Goods – your 14 days starts from the day after you receive the goods. This is
to let you have the chance to examine the goods and decide whether they are
what you had expected and whether you wish to keep them.
Services – your 14 days starts from the day after the service contract was
entered into. You may have to pay for any services that you have received
before cancelling the contract.
Postage Costs – If you can cancel a goods contract, you will have to check
the terms and conditions of the contract to see who is responsible for
collecting or returning goods. Sometimes, the Trader will agree to collect the
goods if the contract is cancelled, but otherwise you may have to pay the cost
of returning the goods to the Trader, if this is stated in the terms and
conditions. If you are responsible for returning the goods, they must be
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returned to the Trader as soon as possible and within 14 days of notifying the
Trader of your wish to cancel the contract.
Delivery Costs – If you paid a delivery charge for the goods to be delivered
to you, then the Trader must refund the delivery costs. However, if you have
selected a more expensive delivery option, such as next day delivery, then the
Trader would only have to refund you for the basic delivery cost and not the
more expensive option that you have selected.
Refund – The Trader must provide a refund within 14 days from the date
when the consumer cancels the contract if the Trader is collecting the goods
or within 14 days from the date when the goods have been received from the
consumer or from the date when the consumer provides proof of postage for
the items.
Damage caused to goods – If the goods are damaged in any way by the
consumer or have been used in a way that is more than a consumer would
handle goods being viewed in a shop, then the Trader may be able to make
deductions from the refund, up to the full cost of the goods.
Off Premise Contracts
A contract is an off-premise contract if:
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the consumer and Trader are together away from the
Trader’s premises such as at the consumer’s home or
place of work and the consumer makes an offer (review
the guide on contract law) or a contract is entered into
a contract is agreed via distance communication or on a
Trader’s premises immediately after the consumer and
Trader have met away from the Trader’s premises
a contract is entered into during an excursion organised
by the Trader.
If a contract is off-premise, then the consumer must be given certain
information, including a cancellation notice and informed of their right to
cancel the contract within 14 days. If this information is not provided then:
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the Trader is in breach of their contract with the consumer and the
consumer can seek a suitable remedy from the Trader such as a
refund.
the Trader commits a criminal offence. More information can be found
regarding doorstep crime later on in the pack.
The contract must be over £42 for the consumer to have the right to cancel
and for an offence to be committed if a cancellation notice or the information
is not provided. If a contract is cancelled, the consumer will be entitled to a full
refund of any monies paid and any associated contracts, such as extended
warranties or finance agreements will also be cancelled.
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Test yourself or your team
Question 1
Explain what distance communication means.
Question 2
Do consumers have an automatic cooling off period if they purchase goods or
services at a Trader’s premise?
Question 3
What is the name of the Regulations that set out a consumer’s right to cancel
when they enter into distance and off-premise contracts?
Question 4
How many days does a consumer have to cancel a contract for goods under
the Regulations?
Question 5
How long does a Trader have to refund your money if you cancel a contract
purchased via distance means?
Question 6
If I purchase a jumper and request next day delivery and pay an extra £5 for
this service, should the Trader refund this £5?
Question 7
What is an off premise contract?
Question 8
If a Trader does not inform a consumer of their right to cancel and provide
them with a cancellation notice, what are the consequences?
Question 9
The cancellation requirements do not apply to contracts under how much?
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