Signing a contract after concluding a purchase is a common and frequent commercial practice between consumers and traders.

But how many times do consumers stop to take the time to read the terms of the contract they are signing? Most consumers do not realise that when they do not read a contract before signing it, they risk unpleasant surprises.

For instance, the sales contract may not specify the agreed delivery date or the type of product written in the contract may be different than the one chosen by the consumer.

Hence, consumers have the responsibility to verify that what they agreed with the trader is included in the sales agreement. Consumers should specifically check the details of the product/service ordered, the agreed delivery date and the amount of deposit paid are included in the contract. The contact details of the trader must also be written down.

If after taking these precautions consumers inadvertently sign for terms and conditions that try to limit their legal rights, they are protected by the provisions of the Consumer Affairs Act.

This legislation provides a list of contract terms that are considered unfair and nullifies the legal consequences of these conditions.

Among the contract terms that the law considers unfair there are terms which:

• exclude or limit the liability of a trader for every possible eventuality;

• terms which establish an unreasonably short period for notifying the trader of any defects;

• terms that exclude or limit the legal rights of consumers against the trader in the eventuality that the trader does not adhere to the contract agreed on.

Terms allowing 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 are also prohibited.

Moreover, a consumer cannot be requested to pay the trader as compensation a sum that is disproportionately high to the value of the goods or services purchased or hired.

The consumer cannot be prohibited from cancelling the contract if the trader fails to fulfil his obligations. This means that a trader cannot impose a contract term that allows the seller to change significantly what the consumer is buying without giving the consumer the chance to withdraw from the contract.

It is also prohibited to irrevocably bind the consumer to terms with which he had no real opportunity of becoming acquainted with before the conclusion of the contract.

When such unfair terms are included in consumer contracts, the trader cannot enforce them by obliging the consumer to abide by them.

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 the meaning of a term, the law provides that the interpretation most favourable to the consumer shall prevail.

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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