The Consumer Protection Act (CPA) is a vital piece of legislation that seeks to protect consumers from unscrupulous business practices. One of the key provisions of the act is the cancellation of contracts. In this article, we’ll discuss what the cancellation of contracts means under the CPA, when and how it can be invoked, and what remedies are available to consumers.
What is the Cancellation of Contracts?
Under the CPA, consumers have the right to cancel a contract within a certain period, without having to provide any reason for doing so. This right is known as the cooling-off period and typically lasts for seven days from the date of the contract. However, certain types of contracts, such as those for perishable goods, are exempt from this provision.
When Can the Cancellation of Contracts be Invoked?
The right to cancel a contract is only available to consumers who have entered into a contract with a business. It does not apply to contracts between businesses. Additionally, the cooling-off period does not apply to contracts that are entered into in person, such as the purchase of goods from a physical store. The cooling-off period is only applicable to contracts that are entered into remotely, such as online or over the phone.
How to Invoke the Cancellation of Contracts?
To invoke the cooling-off period, the consumer must inform the business in writing within the stipulated period. It is advisable to do so via email or registered post so that there is a record of the communication. The business must then refund the consumer’s payment within 15 days of receipt of the cancellation notice.
Remedies Available to Consumers
If the business fails to comply with the cancellation of contracts provision, consumers can seek redress through the relevant channels. The first step is to escalate the matter with the business. If this fails, consumers can lodge a complaint with the National Consumer Commission (NCC) or seek legal recourse through the courts.
In conclusion, the cancellation of contracts provision under the CPA is a valuable tool for consumers to protect themselves against unscrupulous businesses. Consumers should be aware of their rights and use them when necessary. Businesses, on the other hand, should ensure that they comply with the provisions of the CPA to avoid any legal repercussions.