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Know The Law - Cancellation RightsMost contracts will be legally binding and enforceable as soon as they are made. The supplier must deliver the goods or services mentioned in the contract and the customer must pay the purchase price.As a general rule, customers cannot get out of a binding contract simply because they change their mind. This would be considered to be a breach of contract on the customer's part and may mean that the customer will have to pay the innocent party compensation to cover any loss of profit and expenses. However, there are certain cases when a customer can cancel a contract without incurring a penalty. Consumer Credit Agreements
Contracts made in a Consumer’s Home or Place of WorkThe Cancellation of Contracts made in a Consumer's Home or Place of Work, etc Regulations 2008 provide cancellation rights for most contracts over £35 that you enter into when at your home or otherwise away from the trader's usual place of business. The regulations apply whether you invite the trader to your home or if their visit is unsolicited.At the time the contract is made, the trader must provide you with a written notice explaining your rights to cancel. This will then give you 7 days to cancel the contract starting the day the cancellation notice is received. If you do cancel, you will be entitled to recover any deposit made. You may have to pay a reasonable charge if you agree in writing to work starting or consume goods within the seven day period and then cancel.
How To Cancel
Failure To Give Notice Of Cancellation RightsIf you have signed a contract/credit agreement at home and you have not been given cancellation rights, the agreement may not be enforceable against you and the supplier may have committed an offence.For further advice on any of these issues, contact The Trading Standards Advice Line.This page revised December 2009
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