Every time we buy a product or service, we form a legally binding contract. These contracts do not necessarily need to be in writing to be binding. In fact, many sales contracts are done verbally and some are even done in silence.

For instance, when we pick up something in a shop and go to the cashpoint to pay, we may barely utter a word, but that sale is still binding on both seller and buyer.

The main disadvantage of verbal contracts is that if something goes wrong and there is a dispute between seller and buyer about what was agreed or terms and conditions of the sale, we may have a hard time proving our version of the agreement.

Hence, verbal agreements should ideally be backed up with something in writing, showing what we have agreed to when concluding the sale.

Sometimes we first verbally agree with the trader, after which the latter sends us a confirmation of the sale. It is important that such a document is carefully read and is in line with the verbal agreement.

If it is different, we should immediately contact the trader, remind him of the verbal agreement, and request a corrected written confirmation. If we do not do this, then we may lose our right to complain about the product/service delivered if it is not according to what was originally agreed.

Certain sales contracts, such as when we order a new appliance or furniture, or 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 to, the time of delivery and 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 also pay particular attention to how much notice we should give if we do not intend to renew the contract. We should also carefully read and understand the termination procedure.

It is important that the confirmation of the sale in writing is carefully read and is in line with the verbal agreement

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 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 the agreed timeframe, 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 ask the trader to remedy the situation.

Should there be a dispute over a breach of a sales contract, consumers may seek the help of the Office for Consumer Affairs at the Malta Competition and Consumer Affairs Authority.

Upon filing a complaint, consumers should also submit a copy of the breached contract together with any other evidence that proves that the trader has not honoured his part of the agreement.

odette.vella@mccaa.org.mt

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

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.