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Sometimes, you change your mind about a purchase of goods or services. There are legal rules about when you can cancel or end a contract and whether or not you will get your money back.
Always ask about the store's policy on refunds. You may want to shop only in stores where the practice is to give refunds or exchanges.
Consumers do not always have a right to a refund. If a store has no sign posted, it does not have to give your money back just because you changed your mind or bought a cheaper item elsewhere. In this case, if they offer an exchange, replacement or store credit, it is more than they are legally required to offer you.
Stores are not required to post signs regarding their policy on returns. However, if a sign is displayed, the store is obliged to comply with its own policy. In this case, you can return the item and expect a refund as long as you comply with any conditions stated.
For example, a store may display a sign that says, “Refunds and exchanges with receipt.” In this case, the store is obliged to refund your money or exchange the item only if you provide the sales receipt for your purchase. The store also may require the refund or exchange to be within a time limit. For example, the policy may be require that refunds be made within 3 days.
There are some situations where a consumer can end a contract for a sale…
Misrepresentations or false statements that persuade a consumer to enter into a contract can make that contract voidable. This means that either party can cancel the contract if they want to. However, the misrepresentation must be about a major part of the contract, not some minor detail. The contract must also be cancelled within a reasonable amount of time.
Duress is when someone does not enter into the agreement voluntarily, but only because they were forced to. This can be due to intimidation, threats or other extreme pressure tactics. Generally, a contract signed under duress cannot be enforced against a party who entered it under duress.
A party to a contract may breach the contract. This means they have failed to perform their part of the agreement. If the breach is serious enough, the other party may no longer need to perform their obligation under the contract. However, it may be difficult to prove when a contract has been breached. Perform your part of the bargain unless you are sure the other party has breached the contract. You may need to get a lawyer's advice to help you decide when this has happened.
A party to a contract can always agree to release the other person from their obligations. To cancel a contract by consent, each party agrees to give up any rights to receive an agreed upon benefit. They are also promising not to sue the other person for a breach of contract.
Under consumer protection laws, you have the right to cancel certain types of contracts in some circumstances. There are time limits and notice requirements. Depending on the circumstances, you may be entitled to a full or partial refund.
Depending on the type of contract, there are a number of grounds for cancelling a contract.
Without having any reason, a consumer can cancel:
The following types of contracts must be in writing:
These written contracts, with all the required information, must be provided to the purchaser within 15 days of the purchase.
In the case of direct sales contracts, the written contract must be provided to the purchaser immediately.
Consumers have cancellation rights if a copy of the contract is not provided to them, or the contract does not contain the required information.
If a copy of the contract is not provided, consumers can cancel:
If the contract does not have the required information, consumers can cancel:
Purchasers under internet or remote contracts must be given a chance to correct errors or decline the contract before entering into it. If they are not, they can cancel up to 7 days after they receives a copy of the contract.
If the goods or services were not received or did not begin on the specified date, internet, remote, future performance and direct sale contracts can be cancelled if:
In the case of direct sale contracts, consumers have up to a year from signing the contract to cancel because they did not receive the goods or services.
If services are not provided, the contract can be cancelled immediately for:
A consumer cannot refuse to accept delivery or refuse the start of services and then attempt to cancel the contract on the grounds of delay.
A personal development services contract can be cancelled if the company providing it:
A travel club contract can be cancelled if the company providing it:
A personal development services contract can be cancelled if:
Notice must be given within the allotted time frame to cancel a contract for any of the above reasons.
Notice to cancel an internet or remote contract can be given by:
Notice to cancel a future performance contract can be given by:
Notice of cancellation of a personal development services contract can be given by:
Notice of cancellation of travel club contract can be given by:
Notice of cancellation of a direct sales contract can be given by any means that allow you to prove that you gave the notice including:
If you exercise your right to cancel a contract based on any of the above reasons, the seller must give you a refund within 15 days. For internet, remote and future performance contracts, if you paid by credit card and do not receive your refund within 15 days, the credit card company must reverse the charges if you make a request.
If you have received the goods, you must return them to the seller unused. If you have received some of the services, you will only get a partial refund that reflects the cost of the services you already used.
Trouble with exercising your cancellation rights can be reported to the Financial and Consumer Affairs Authority.
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