Business Contracts Made Away From Trade Premises

Before 1st October 2008 only traders who cold called potential customers were legally obliged to give cancellation notices. Now, with very few exceptions (such as transactions up to £35 and supply of foodstuffs and beverages by regular rounds men) ALL businesses who sell goods or services away from their normal trading premises must have cancellable contracts.

The Cancellation of Contracts Made in a Consumer's Home or Place of Work Etc Regulations 2008 provide for a cooling off period of seven calendar days starting to run from the date of the contract. The Regulations are enforced by the Trading Standards Service and failure to comply may result in legal action being taken.The Cancellation of Contracts Made in a Consumer's Home or Place of Work Etc Regulations 2008 provide for a cooling off period of seven calendar days starting to run from the date of the contract. The Regulations are enforced by the Trading Standards Service and failure to comply may result in legal action being taken.

The contract must display prescribed information in a clear and prominent manner and have a detachable notice which can be used by consumers who wish to cancel. Consumers may also cancel by electronic means, and cancellation takes place at the time the cancellation notice is posted or the e-mail sent to the named person or business in the contract.

If a consumer wants the work to start immediately he must make a record of this on the contract and the trader must advise that payment will be due for work undertaken before the cancellation period is up if he cancels later. The trader must make a record of this on the cancellation notice.

The new Regulations, understandably may be viewed by genuine businesses as burdensome and unnecessary. In reality, although their primary objective is to protect consumers they also clarify situations which were previously uncertain and made it difficult for some traders to enforce contracts when they had complied with legal requirements.

One such example is that of allegations by consumers that cold callers used the required contract with the cancellation notice, but started work straight away without consent and then demanded payment. Indeed there is evidence that this occurred and such practice undermined the case for genuine businesses who where asked to start the work immediately.

Businesses who advertised their services and were subsequently contacted by consumers on occasions were accused of unsolicited visits and non compliance with the old Regulations. If telephone conversations were not recorded it was impossible to prove whether the telephone call was a request for further information or an invitation to visit.

In short, the Cancellation of Contracts Made in a Consumer's Home or Place of Work Etc Regulations 2008 protects consumers and legitimate businesses alike.

Although all contracts are cancellable it is still possible for performance of contracts to start immediately provided the required records are added to the contract by the consumer and the trader at the time of the visit.

A sample contract displayed below contains the information required to comply with the new Regulations.