Frettens Solicitors recently dealt with a case where their client, a builder, instructed them to recover an unpaid invoice, which was unfortunately unrecoverable because of an absent clause in the builder’s contract with their customer. Frettens warn that "The Cancellation of Contracts made in a Consumer's Home or Place of Work etc Regulations 2008" legislation may be unknown to many small businesses but it can render their new business contracts void.
The regulations affect those supplying home improvement services such as building works and double glazing, along with cosmetics, clothes, household items, energy supplies and mobility products like stair lifts. All traders who enter into a written or verbal contract with a customer in their home or workplace, can be affected.
Litigation & Debt Recovery specialist at Frettens, Carla Barker, explains that businesses must give the customer a right to cancel the contract and a cooling off period of seven calendar days to do so. She says “Crucially, the customer must be given written notice of their right to cancel, whether the contract is written or verbal. This must be given at the same time as the contract is made and it must be phrased in a particular way. If it is not included correctly, the trader cannot enforce the contract against the customer, and may also face a maximum penalty of £5,000.”
If a trader begins work during the cooling off period, without written consent from the consumer to do so, the consumer is legally able to cancel the contract and is not obliged to pay for the goods and services that have been provided.
Carla concludes “The onus is on the trader to ensure that he has written permission before beginning work and that his contracts are watertight.” Frettens Commercial Solicitor, Amy Muncer, can review and, if required, redraft the principal terms of any contract or standard terms of trading for any business.
Contact Carla Barker regarding any disputes or unpaid invoices to settle or recover. Contact Carla Barker or Amy Muncer on 01202 499255 or read more about our commercial litigation and commercial contracts services.