A sales contract is entered into when a consumer buys or hires a product or service for their own personal use from a person acting for the purpose of their trade, business, craft or profession. A sales agreement is binding whether concluded verbally, in writing and even electronically.
Sales contracts that are concluded in writing/electronically often include specific terms and conditions of sale which consumers accept when they sign the contract. Should a problem arise with the sale, consumers’ right to a satisfactory remedy may depend on the agreed terms and conditions. In view of this, it is in consumers’ best interest to take the necessary time to read and understand the sales contract before signing it.
In the first instance, consumers should make sure that the contract includes all that was agreed with the trader while negotiating the purchase. Hence, it should include a detailed description of the good or service, the total price, how the payment will be effected, and, where applicable, the agreed delivery date. It is also important that the sales agreement includes the trader’s full contact details. If, while reviewing the contract, the consumer notices different conditions than the ones verbally discussed and agreed, the consumer should immediately inform the trader and request that the contract is amended accordingly. In situations where consumers do not understand certain terms and conditions, they should not hesitate to ask the trader to explain and clarify these conditions.
A sales agreement is binding whether concluded verbally, in writing and even electronically
Consumers should be extra careful when certain terms and conditions are written in fine, small print. These should be read carefully as they may include very important information.
Another important responsibility consumers have is to be certain about the purchase they are about to make. Once a sales contract is signed, or confirmed through the payment of a deposit, consumers cannot simply change their mind. If they do, they may incur a cancellation fee or even forfeit the deposit paid.
In case of long-term contracts, such as those for the provision of telecommunication services, consumers should also pay particular attention to the termination procedure. Hence, before consumers sign a sales contract, they should consider what happens if they need to withdraw from the agreement.
While consumers are responsible to read and fully understand a contract before signing it, traders cannot legally bind consumers to contract terms that they were not aware of before the sale was concluded. Consumer law also stipulates that consumer contracts should be written in plain and intelligible language that can be easily understood by the average consumer. With regard to consumers’ rights, if the trader does not provide the product or service as per the agreed contract, the consumer may request an adequate free of charge remedy. Furthermore, if the trader is unable to honour the sales agreement, consumers may choose to opt out of the contract and claim a refund of the money paid. Disputes concerning sales contracts may be addressed to the Office for Consumer Affairs at the MCCAA for guidance and assistance.
Odette Vella, Director, Information and Research Directorate