A consumer contract is made whenever an agreement is entered into between a consumer and a trader.

Consumers are usually presented with contracts to sign when they order an item, such as a piece of furniture or an appliance, or when they subscribe to a service, such as internet or telephony. Such contracts can be formed verbally or in writing and, legally, both kinds are binding.

However, to avoid any possible misunderstandings, it is in the best interest of both parties to have the sale agreement written in black on white. Contracts may differ in many ways and this also applies to standard form contracts. Hence, before signing anything, consumers should carefully read each and every clause.

Terms and conditions written in very small print should also be paid particular attention to, as the most important information is usually found there.

Once a contract is signed, it becomes binding and neither of the involved parties can change their mind without facing consequences. It would, in fact, be considered a breach of contract if either the consumer or trader fails to adhere to their side of the agreement.

While, in most cases, the consumer is bound to continue with the purchase, the trader is bound to provide the product or service, as agreed. Breaches of contract can also include non-payment for a service or not paying on time, and also failure to deliver the goods or services within a stipulated timeframe.

After signing a contract, consumers can only change their mind if, within the same contract, there is a clause that actually gives them a cooling-off period, during which they are allowed to cancel the sale.

If there is no such clause, then legally there is no way back for the consumer, unless it is the trader who breaches his part of the agreement. In such a situation, the consumer may not only decide to cancel the sale without incurring any penalties, but may also claim back any money already paid. If the breach of contract caused financial damages or a significant inconvenience to the consumer, monetary compensation may also be claimed to make up for the damage.

Should there be a dispute over a breach of contract, consumers may seek the assistance of the Consumer and Competition Division. Upon filing their complaint, consumers should present a copy of the breached contract together with any other evidence which proves that the trader has not honoured the agreement.

Ms Vella is senior information officer, Consumer and Competition Division.

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odette.vella@gov.mt