As consumers, we may find ourselves in situations where we book or order a service and then change our mind and decide to cancel the sale.
Are we legally entitled to cancel an order? Our right to cancel usually depends on whether or not we have confirmed the contract of sale. Our legal rights also vary, depending on whether the sale was concluded in the physical presence of the seller or whether it was concluded with a doorstep or distance seller.
If the contract of sale wasn’t confirmed in writing or with a deposit, we may change our mind without incurring any penalties or charges. However, in such a situation, we should contact the trader immediately and inform him that we do not want to continue with the sale.
If, on the other hand, we have signed an agreement with the trader or verbally confirmed an order, we cannot simply change our mind and cancel the sale. If there is nothing in the sales contract that allows us to cancel the order, we are legally considered as the party who has broken its part of the contract.
In such a situation, we could lose any deposit paid and the trader may even take us to court to claim back the loss of the profit he would have made had we not broken the sales agreement.
Such sales agreements may contain clauses that impose a cancellation charge on consumers if they decide not to continue with the purchase of the service.
It is in our own interest, therefore, to be aware of such clauses before confirming an order. If we do not agree with such charges, we should try and renegotiate them before we conclude or confirm an order.
There are certain situations where we have the right to cancel a service. One of these is when we have a specific pre-sale agreement that gives us the right to cancel the service. Ideally, such an agreement is clearly written in the contract of sale.
Another situation arises in cases where the service is bought through a distance sale, such as by telephone, e-mail or on the internet. Even contracts concluded with doorstep sellers, and hence away from the sellers’ business premises, give us extra cancellation rights.
However, we should be aware that there are exceptions whereby the cooling-off period does not apply, such as when we purchase a service and agree with the seller to start using it straight away. We also have the right to cancel a service when it has already started and is not being carried out as agreed. If this is the case, we should complain immediately by listing out the problems in a complaint letter.
If the seller refuses or is unable to fix the problem, we may ask for compensation, which may include the cost of getting another trader to fix the problem, repairing or replacing things that are damaged by the poor work and also any extra expenses incurred.
The law also allows us to cancel a contract of sale if the agreed date for starting or completing a service is not honoured by the trader.
If the latter refuses to honour his part of the agreement and does not meet our request for refund and/or compensation, we should not waste any precious time and immediately file an official complaint with the Office for Consumer Affairs at the Malta Competition and Consumer Affairs Authority.
If an agreement is not reached after mediation by the authority’s officials is carried out, we can file a claim against the trader with the Consumer Claims Tribunal.
odette.vella@mccaa.org.mt
Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.