When we make an agreement with a seller to purchase a product or a service for an agreed price, we are legally bound to honour the sales agreement.

These contracts do not necessarily need to be in writing to be binding. In fact, many sales contracts are done verbally. For instance, when we pick up something in a shop and go to the cash point to pay, that sale, even though not formally concluded in writing, is still binding on both the seller and the buyer.

Verbal contracts may be problematic should there be a dispute between the seller and the buyer about the terms and conditions of the sale agreed to. If this happens to us, we may have a hard time proving our version of the agreement. To prevent this, it is in our best interest to confirm a verbal agreement in writing once the sales agreement is concluded.

As consumers we are legally bound to honour sales agreements

We may also find ourselves in situations in which what we verbally agree to with the seller is later confirmed in writing and sent to us by post. When we receive such correspondence, we have the responsibility to carefully read all the information and confirm that it is in line with the verbal agreement. If we find any discrepancies then we should immediately contact the trader, remind him of the verbal agreement and request a corrected written confirmation. If we do not do this and inadvertently sign the written agreement, then we may lose our right to ask for a remedy if the product or service delivered is not according to what was originally agreed to.

Certain sales contracts, such as when we order a new appliance or a piece of furniture, or we engage someone to do a specific job for us, are best concluded in writing.

It is also in our best interest to ensure that specific information about the sale is included in the contract, such as a detailed description of the goods ordered or service agreed upon, the time of delivery, and also the total price and terms of payment.

We should also remember that once a sale is confirmed we cannot change our mind. If we do, there is usually a price to pay. Hence, before signing any contracts we should have a look at what happens if we need to cancel the sale. In case of long-term contracts, we should carefully read and understand the termination procedure.

While it is our responsibility to read a contract before signing it, it is legally considered unfair if we are irrevocably bound to contract terms with which we had no real opportunity to read and understand before the conclusion of the contract.

If the seller breaks any terms of the contract, such as for instance, the time-frame is not agreed to, then we may opt out of the contract and claim back any money paid. If the product or service does not conform to the contract of sale we may then ask the trader to remedy the situation.

Should there be a dispute over a breach of a sales contract, consumers may seek the assistance of the Office for Consumer Affairs within the Malta Competition and Consumer Affairs Authority. Upon filing their complaint, consumers should also submit a copy of the sales agreement together with any other evidence which proves that the trader has not honoured his part of the agreement.

Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.

odette.vella@mccaa.org.mt

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