Upon concluding a sales transaction, consumers are sometimes required to sign contracts which very often just confirm in writing what was verbally agreed with the trader. In many cases, these contracts are standardised, meaning the terms are the same for all consumers who purchase the same product or service.
Usually, these contracts include clauses concerning delivery time frames, payment terms, cancellation, warranties, and possible price changes. The issue with these contracts is that they are often written in fine print and are too lengthy for consumers to read.
Sometimes the language used is also too difficult for the average consumer to understand. As a result, consumers tend to sign them and hope they do not encounter any problems.
Unfortunately, consumers do not always realise the importance of reading and understanding the terms and conditions they are agreeing to. In the first instance, by reading a sales contract, consumers can verify that what was verbally agreed to prior to the sale has been included in the sales contract.
Furthermore, sales contracts may include conditions of sale that consumers were not informed about prior to agreeing to the sale; they may also include terms that if enforced may diminish consumers’ legal rights. These are referred to as unfair contract terms and can take many forms.
The Consumer Affairs Act lists several terms that are considered unfair, including clauses that prevent consumers from exercising their legal rights when the seller is at fault.
Other unfair terms are those that allow the trader to retain deposits consumers pay should the latter decide not to proceed with the sale, but the same contract prohibits consumers from requesting compensation if it is the trader who does not honour the sales agreement.
Sales contracts may include conditions of sale that consumers were not informed about prior to agreeing to the sale- Odette Vella
Contract terms that exclude or limit the liability of a trader for every possible eventuality, and terms that establish an unreasonably short period of time for notifying the trader of any defects, are also considered unfair.
Furthermore, if consumers change their mind, or for one reason or another are unable to honour a contract of sale, consumers should not be requested to pay the trader compensation that is disproportionately high when compared to the value of the goods purchased or hired.
If there is a change to what was originally agreed to, be it the price or any characteristics of the product or service, it is considered unfair if the trader reserves the exclusive right to determine the change in price or the conformity with the original contract. It is also prohibited to irrevocably bind consumers to terms they had no real opportunity to get acquainted with before the contract was concluded.
Consumer legislation also stipulates that consumer contracts must be written in plain and intelligible language that can be understood by the average consumer. In case of ambiguous terms, or if any doubts arise about the meaning of a term, the law provides that the interpretation most favourable to the consumer shall prevail.
Despite this protection, consumers are still advised to carefully review any contracts they are asked to sign. While it can be tempting to quickly sign on the dotted line, taking the time to read through a contract and understand its terms, can help consumers detect any non-conformities with what was verbally agreed and also clarify any unclear terms.
Unresolved disputes with local traders regarding unfair contract terms may be referred for assistance to the MCCAA’s Office for Consumer Affairs, which may be contacted either via the ‘Contact Us’ form on the authority’s website below; or by calling 8007 4400, or by sending a message on the MCCAA Facebook page.
Odette Vella is director, Information and Research Directorate, MCCAA.