Business transactions between consumers and traders involve not only the purchase of goods but also the provision of a wide range of services. For instance, consumers may hire a trader to repair a defective product, or undertake home improvement tasks such as plastering, plumbing or tile installation. Other common services consumers may require include engaging professionals like photographers, caterers, mechanics, or architects.
When making these transactions, consumers have the right to expect the services to be provided to a satisfactory standard and in accordance with the agreed terms at the time of purchase. If these expectations are not met, the service provider is legally required to offer a fair and reasonable remedy.
To safeguard these legal rights, it is important that consumers take certain precautions when finalising the sales contract. They must, for instance, ensure that the conditions of sale include information on the type of service booked, the price, the method of payment, and the date when the service or works will be carried out. While these terms can be agreed verbally, it is better that they are written in a formal sales contract. This provides clear evidence and makes it easier to resolve any disputes as to whether a breach of contract has occurred.
When presented with a standard contract, consumers are responsible to read and understand all the terms and conditions before signing. Ambiguities should be clarified, and if certain terms are unacceptable, consumers can attempt to negotiate changes. If the service provider is unwilling to make reasonable adjustments to the sales contract, consumers are advised to explore alternative providers.
The work must meet the standard of a reasonably skilled professional
Once a contract is signed, it is legally binding and typically cannot be changed without consequences, such as losing the deposit paid or incurring penalties as outlined in the sales agreement. Consumers may also be required to cover any additional costs incurred by the trader as a result of the cancelled agreement.
On the other hand, consumers have the legal right to terminate a contract if the service provider fails to deliver the agreed-upon service or if the quality is unsatisfactory. For services requiring specialised skills, such as construction or repairs, the work must meet the standard of a reasonably skilled professional. Failure to meet these standards gives
consumers the right to seek remedies at no additional cost to them. The consumers’ compensation may also include additional costs incurred in hiring another service provider and damages resulting from the substandard service or poor workmanship.
The trader who enters into a sales contract with the consumer remains responsible, even if they subcontract all or part of the service to another party. For example, if a consumer hires a turnkey contractor to renovate their home, and the company outsources the electrical work to a third-party electrician, any issues with the electrical work, such as faulty wiring, would be the responsibility of the turnkey contractor. This is because the consumer’s contract is directly with the turnkey contractor, not the subcontracted electrician, making the turnkey contractor legally liable to provide an adequate remedy.
If an issue arises, consumers should act quickly and address their complaint to the trader who provided the service, and request a reasonable resolution. It is essential that consumers refrain from attempting to fix the problem themselves or hiring someone else to do so.
The service provider must always be given the opportunity to resolve the issue at no additional cost. Third parties should only be involved if the trader denies responsibility or if an unavoidable emergency arises.
In cases of substandard work, it is recommended to document the damages, by, for instance, taking photos or videos as evidence.
Complaints should be communicated to the trader in writing, as written records can serve as evidence. Consumers should retain copies of all correspondence and related documents, and also keep track of individuals involved in the complaint process.
In their written complaints, consumers must specify a reasonable timeframe for the trader to resolve the issue. What is deemed ‘reasonable’ depends on the type of service, its significance to the consumer, and the nature of the problem.
If the trader refuses to address the issue or denies compensation, consumers can seek advice and assistance from the Office for Consumer Affairs at the MCCAA. This office provides guidance on consumer rights and can assist in resolving disputes with traders.
Odette Vella is director, Information and Research Directorate, MCCAA.