Consumer Right to Cancel Contract
27th January 2010
Recent publicity has highlighted the importance of new rules applying to tradesmen and professionals who conduct business at customers’ or clients’ homes or event their place of work.
The Cancellation of Contracts Made in Consumer’s Home or Place of Work etc Regulations 2008 became effective as of 1 October 2008, and enhance previous consumer protection legislation by giving consumers the right to cancel a contract for the supply of goods or services made during a visit to their home or place of work.
The trader/professional is carrying out his business, but the consumer is not. Therefore, the regs do not apply to commercial contracts.
The rules apply to solicitors.
The cancellation right endures for a cooling-off period of seven days.
Any written contract must stipulate the consumer has this right, and failure in this regard is a criminal offence (Sch.4, Part I). It must also provide a cancellation form.
For practical purposes, a prudent trader/professional may wait until the end of the cooling-off period before starting work. However, the consumer may make a written request for services to commence straightaway, in which case the trader/professional should advise the consumer in writing that they will be liable for any costs incurred during the cooling-off period notwithstanding eventual cancellation.
The regulations do not apply to certain contracts (Sch.3), including residential purchases and tenancies (therefore conveyancers, letting agents and private landlords are effectively exempt).
In the event of non-compliance, the contract may be unenforceable.