Consumers given further rights over contracts

Businesses who deal with consumers at their home or away from their business premises should be aware of new regulations that came into force on 1 October 2008 known as the Cancellation of Contracts Made in Consumers' Home or Place of Work etc Regulations 2008. The Regulations are designed to protect consumers who may have felt pressurised to enter into contracts and give them further cancellation rights.

The new rights apply to contracts for goods or services made during a visit by a trader or by the trader away from its business premises. The Regulations expressly state that contracts for the building of extensions, conservatories, patios and driveways or involving home improvements generally will be caught by the consumers' right to cancel.

Certain contracts are exempt from the new Regulations, for example, contracts involving the sale or rental of property, consumer credit agreements which include rights to cancel, contracts for the supply of food and drink and contracts involving investments or insurance contracts.

Traders have an obligation under the new Regulations to notify consumers of their right to cancel in writing at the time that the contract is made. Failure to include all the information required in the written notice renders the contract unenforceable against the consumer and constitutes an offence.

Businesses who are concerned about these Regulations should review and consider updating their terms and conditions. Please contact Frank Scott-Ashe (frank.scott-ashe@blbsolicitors.co.uk) for a health check of your terms and conditions.