Certain types of goods we purchase first need to be ordered and then delivered to our home.

Our strength very often depends on how much money we still owe the trader- Odette Vella

This is usually the case when we either need to purchase goods that are not stocked by shops, need to be made to measure according to our needs, or are too bulky for us to carry.

In these situations, we are usually asked to place an order and pay a deposit or down payment. What are our rights and responsibilities in such cases? How much deposit should we pay? What are the risks we may encounter when paying a deposit?

Once we agree to pay a deposit, the sale is confirmed. Therefore we are entering a commitment. If we change our mind about the goods we ordered, we might lose our deposit.

Losing the deposit is not our only risk. When we change our mind, we may also be obliged to continue with the purchase. It is therefore important that we are sure of what we want and need.

Ideally, we must also check with the supplier whether we may claim our deposit back if something happens and need to cancel the order. If this is not possible, we could perhaps ask for a credit note of equivalent value. If not even a credit note is possible, we need to be extra sure about our purchase.

To avoid change-of-mind situations, it is advisable to shop around before paying any deposits. In cases of products that we won’t be using for a while, there is no need to order them a long time before.

New models may be produced that will provide us with a better choice. There is also the possibility that circumstances may change and hence our needs may change too.

The deposit to be paid needs to be agreed with the supplier, since this is not regulated by law. On most occasions, it is the supplier who suggests the amount to be paid, but if we think the sum is too high taking into consideration the total price, there is nothing that stops us from re-negotiating the amount.

Another issue we need to agree on is how the rest of the payment will be made. Are we going to pay by instalments? Or is the full balance to be paid upon delivery?

It is also important to agree on the date of delivery. This should be written black on white on the contract of sale. A description of the goods ordered should also be included in the contract. This is important because if it is the supplier who does not adhere to the terms of the contract, we may have a right to ask for our deposit back and cancel the sale. The trader may also be liable to any other reasonable costs we may have incurred as a direct result of the seller’s breach of contract.

Even though we may be convinced of the product we want to buy, we should always try to negotiate the least possible deposit. We must keep in mind that we are paying money for something that is still not in our possession and hence various problems may crop up.

One of the worst scenarios is that the seller can go out of business. If this happens, it might be difficult to get the goods or our money back. Usually, in these circumstances the seller owes money to a number of people, so our claim would be one of many.

There are rules for priority to be given to the various debts in case of a business going into liquidation, and generally the individual consumer is low on the list.

There could also be problems with the actual order, such as a different product is delivered or arrives with missing components. As consumers, we should bear in mind that, when this happens, our strength very often depends on how much money we still owe the trader.

Hence the advice is to cling to our money until what we have ordered is delivered and carefully checked out.

When facing problems after paying a deposit, we should always check what our legal rights are and, whenever necessary, seek the help of the Office for Consumer Affairs by calling Freephone 8007 4400.

customer@timesofmalta.com

odette.vella@gov.mt

Ms Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.