Contract Terms

Before you sign, read all pages of a contract including the fine print. In law, ignorance is no excuse. Contracts often have a clause in fine print stating that you have read and understood all the contract’s terms.

You should never:

• sign a contract you do not completely understand
• sign a contract simply because you want to get rid of a salesperson
• take a salesperson's assurances that part of the contract is unimportant and it is not necessary that you understand it
• leave a contract term blank without crossing it out and initialling it as someone else could fill it in and you may have trouble proving that you did not agree to it

In the end, if you still are uneasy about a contract, simply do not go ahead with it. The law does provide protections that prevent sellers from including some unfair terms in a contract. In many cases, however, a consumer will have to live with the terms they have agreed to. These protections require sellers to:

• include terms that are harsh, oppressive or excessively one-sided
• give reasonable prominence to the total price of the goods or services when only part of the price is represented to the consumer
• not represent rights, remedies and obligations concerning the sale in a deceptive or misleading manner
• not enter into agreements where the price grossly exceeds a price consumers could get elsewhere

Most contracts that consumers sign are standard form contracts. This means that they are printed in advance, and you need only sign on the dotted line. Examples are cell phone contracts, car rentals and rent-to-own agreements.

These contracts are often long, technical, and full of fine print. These factors combined with time pressures mean that many people do not read before they sign. However, it is essential that you know what the contract contains. Many people do not have a detailed look at a contract until something goes wrong. At that point, it is most often too late to get out of the deal.

If the business agrees, you can make alterations to a standard form contract. You may wish to add a "Subject to..." clause. For example, when buying a used car, you may want to write in "Subject to mechanic's approval". Or you may wish to cross out some clauses that you do not understand or that you do not agree with. Be sure to initial any changes you make and have the other party initial the changes as well. Always keep a copy of the contract.

However, many businesses will not permit alterations to be made to their contracts. If you choose to go elsewhere, you may be faced with the same standard form contract. If so, the only solution is to know and understand the terms of the contract you are signing. If you do not like the terms, simply do not agree to them, and do not sign.

In Saskatchewan, certain contracts must be in writing and include certain information. These contracts are:

• remote contracts
• internet contracts
• future performance contracts
• personal development services contracts
• travel club contracts

A copy of these written contracts must be provided to the consumer within 15 days of the contract being signed. The law only applies to these contracts when they involve the purchase of personal, family or household goods or services with a value of $50 or more. They do not apply to purchases from a private individual rather than a business.

Each of these types of contract must have certain information. This includes:

• the purchaser’s name
• the date of the contract
• contact information for the seller including their name, telephone and address and other contact information such as fax number and email address, if the seller uses these means to conduct business
• if the contract takes place over a period of time, the start and the end date
• a fair and accurate description of the goods, services, discounts or benefits
• an itemized amounts for all charges including taxes and shipping charges
• a description of other possible charges such as customs and brokerage fees
• the currency that the payment must be in if payment is not in Canadian dollars
• the total amount payable
• when and how the goods or services will be supplied
• when and how payments must be made
• information about delivery arrangements
• cancellation, return, exchange and refund policies
• any other restrictions, limitation and conditions that may apply

Remote contracts are where the purchaser and seller are not physically together including things like phone or mail orders and catalogue shopping.

Internet contracts involve purchases made online.

Future performance contracts are where you agree to buy something that you will receive or pay for in the future. Some types of future performance contracts are not covered by these rules including purchases of gift cards and sales that relate to perishable foods.

Future performance contracts concerning personal development services or travel club benefits are covered by the rules for those types of agreements. Similarly, future performance contracts made over the internet or made when the parties are not physically present together are covered by the rules concerning those types of contracts.

Personal development services contracts are agreements for services related to things like health, fitness, modelling, sports, and dancing. Some types of personal development services contracts are not covered by these rules including contracts with:

• non-profits
• co-operatives
• private clubs owned primarily by their members
• organizations funded or run by the government or a charity

These contracts must also include:

• the address where the services will be provided
• the date on which each service will be available and any reduction in price if the service is not available on that date
• the consequences of the consumer missing any payment
• information about cancellation rights

There are also some additional requirements for these types of contracts…

• The contract cannot be for more than two years.
• The seller cannot require or accept prepayments for more than 12 months.
• The seller must give the purchaser at least one option of paying by instalments of equal monthly payments over the course of the contract. The charge for spreading the payments out over the course of the contract cannot exceed 25% of the contract price.

Travel club contracts are membership agreements that give you access to a travel or vacation club. This comes with the right to discounts or other benefits when buying any services related to travel or vacation.

These types of contracts must also include:

• the place the contract was entered into
• a list of each payment and the goods or services for which it is payable
• the consequences of the consumer missing any payment
• information about cancellation rights

There are also some additional requirements for these types of contracts...

• The contract cannot be for more than one year.
• Any prepayment under the contract cannot be for more than $500.