There are several types of consumer contracts or direct agreements with sellers to purchase a product or service. These contracts are usually either concluded in writing or verbally.
While both type of contracts are legally binding, written agreements are the safer option as they provide proof of what was agreed between the consumer and the trader during the sale.
Furthermore, the rights and obligations of both consumers and traders usually depend on the terms and conditions written in the contract of sale. A breach of these conditions, such as changing the agreed price or the delivery date, is considered a serious infringement that can nullify the validity of a sales agreement.
In view of this, it is in consumers’ best interest to find the time and patience to read and understand the terms and conditions of a sales agreement before signing it.
When reading such contracts, consumers are responsible to ensure that the contract includes all the important elements of the sale, such as the agreed price, the method of payment, a clear description of the goods or services purchased, the agreed delivery date or in case of services, when the service will be provided, and the contact details of the trader.
If a contract term can be interpreted in different ways, it is the interpretation most favourable to the consumer that prevails
Consumers may also find themselves in situations where what was verbally agreed with the seller is later confirmed in writing and sent to them by post or via e-mail. In such situations, consumers are responsible to carefully read all the information and confirm that it is in line with the verbal arrangement. If consumers notice different conditions than the ones agreed, they should immediately communicate with the trader and request that the written sales contract is amended.
Should consumers inadvertently sign a contract with terms and conditions that are different than those agreed with the trader, consumers may lose their right to request a free remedy if the product or service provided is not as originally agreed.
Once a contract of sale is concluded, consumers cannot simply change their mind. If they do, they may incur a financial cost. This is usually explained in the terms and conditions of the sales agreement.
In the case of fixed-term or long-term contracts, such as contracts for the provision of telecommunication services, consumers should carefully read and understand the termination procedure.
From traders’ perspective, sellers should take note that consumer legislation obliges them to draft consumer contracts in clear and intelligible language. In fact, the law also lays down that if a contract term can be interpreted in different ways, it is the interpretation most favourable to the consumer that prevails.
It is also prohibited for traders to include unfair contract terms in consumer contracts. In other words, clauses that diminish or restrict consumers’ rights are not allowed by law. If such terms are included in sales contracts, sellers cannot enforce them even if consumers accept them and sign the agreement.
Despite this legal protection, consumers should still be vigilant and responsible when signing contracts of sale. If they are not comfortable with certain clauses, consumers should try and renegotiate them before concluding the sale.
Should there be a dispute over the interpretation or implementation of a contract clause, consumers may seek the assistance of the Office for Consumer Affairs at the Malta Competition and Consumer Affairs Authority. When filing their complaint, consumers should also submit a copy of the sales agreement so that proper guidance can be provided about the legitimacy of their claim.
Odette Vella, Director, Information and Research Directorate