Most of the purchases made between consumers and traders are finalised with a contract featuring a list of terms and conditions that must be adhered to by both parties.

To avoid nasty surprises, prior to signing such contracts, it is imperative that as consumers we check and carefully read each written clause. Always ensure that what we agree with the seller at the time of sale is included in the contract of sale.

Sales contracts should include the following information:

• the main characteristics of the goods/services;

• the name, address and telephone number of the trader or service provider;

• the total price of the goods or services;

• where applicable, the arrangements for payment and delivery;

• where applicable, the duration of the contract and the conditions for terminating the contract.

Consumer contracts might include unfair terms which are prohibited under the Consumer Affairs Act.

A contract term is unfair when it tries to limit a consumer’s legal right. The law provides a list of what could be considered an unfair term, among which we find contract terms that exclude or limit the liability of a trader for every possible eventuality; terms that establish an unreasonably short period of time for notifying the trader of any defects; and terms that allow the trader to retain sums paid by the consumer should the latter cancel the contract but is prohibited from requesting compensation if it is the trader who cancels the contract.

Moreover, the consumer cannot be prohibited from cancelling the contract if the trader fails to fulfil his obligations.

It is also considered unfair to irrevocably bind consumers to contract terms, with which they had no real opportunity to familiarise themselves with before the sale was concluded.

The law protects consumers from such unfair terms by nullifying the legal consequences of these conditions. In other words, unfair terms are not binding on consumers.

Consumer contracts should also be written in plain and intelligible language which can be easily understood. Should a term be ambivalent, or any doubt arises about meaning, the law provides that the interpretation most favourable to the consumer shall prevail.

When consumers have a dispute over unclear contract terms, or do not agree with the seller on the interpretation or enforcement of a contract, they may contact the Office for Consumer Affairs within the Malta Competition and Consumer Affairs Authority to check what their legal rights are and how best to proceed.

This office has the authority to take the necessary legal actions and thus have unfair terms removed from consumer contracts.

odette.vella@mccaa.org.mt

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

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