Mr A wanted a new patio laid and contacted ABC Limited to obtain a quote. ABC Limited visited Mr A’s house and, having looked at the work required, gave Mr A a quote for the works. Mr A was so impressed with the quote that he immediately entered into a contract with ABC Limited.
ABC Limited laid the patio in line with the contract and then invoiced Mr A for the work that had been done.
Mr A refused to pay ABC Limited for the work done and they therefore issued proceedings against him for the sum due under the unpaid invoice.
At the hearing, the judge found that, whilst the works were of a high standard and were undertaken in line with the contract, the contract was unenforceable as ABC Limited had failed to inform Mr A of his right to cancel the contract. Therefore, Mr A was not obliged to pay ABC Limited anything for the work they had done.
The decision above illustrates the importance of The Cancellation of Contracts made in a Consumer’s Home or Place of Work etc. Regulations 2008 to any companies or individuals who supply goods or services to consumers and enter into contracts, both verbal and written, with consumers whilst at their home or place of work or after making such a visit.
The Regulations require the consumer to be given a period of at least 7 days in which to cancel the contract. This period will run from the date on which the consumer is supplied with written notice of their right to cancel.
Therefore, it is vital to include this information in your standard terms and conditions.
If the consumer exercises their right to cancel within the relevant period, then the contract is treated as if it had never been entered into and the consumer will normally be entitled to a full refund of any monies they have paid.
As you can see from the example above, if you fail to comply with these Regulations, the consequences can be disastrous and you can be faced with an unenforceable contract. In addition to this, you could face a fine of up to £5,000.
The regulations do not cover all contracts and there are exceptions. So, if are seeking to enforce a contract but are concerned as to whether the contract is enforceable, please contact Polly Frost on 0117 906 9452 or polly.frost@gregglatchams.com
