Cancellation of Consumer Contracts

Under the Cancellation of Contracts Made in a Consumer’s Home or Place of Work Etc Regulations 2008 new restrictions were imposed on certain types of contract from 1 October 2008.

The regulations do not apply to tenancy agreements but they do apply to agent’s terms of business with landlords. The regulations only apply where the contract is concluded (ie. signed) in the consumer’s home or workplace with the agent present. If they are mailed out and back or signed in some other place then the regulations will not apply.

Contracts that are made in the consumer’s home or workplace are able to be cancelled within 7 days of being made. Agent’s can seek reimbursement of any costs they have incurred provided that the consumer has agreed in writing but there is no right to claim any form of fees.

Contracts that fall under the regulations must include a notice setting out the consumer’s right of cancellation and failure to provide this is a criminal offence punishable by a fine of up to £5,000. In addition, clauses in the agreement will not be enforceable until such notice is given.

PainSmith Solicitors are able to supply copies of such notice on request.

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