While anything is possible by agreement, it is important to acknowledge that customers may not fully understand what they are agreeing to, which could render your agreement ineffective in protecting you against future claims.
Although it is not the seller’s responsibility to inform customers what their rights are, offers should be made in good faith, and without an intention to mislead. Offers should never be based on false information.
An agreement does not need to be in writing to be binding, but it is much easier to prove the terms of an agreement if there is a documented paper trail of it. Written communication, like letters, emails, or texts, also makes it easier to demonstrate that the customer was informed of the terms and conditions of the agreement. For example, by accepting a full and final offer, the customer would be in breach of the agreement if they seek further compensation or assistance.
In a recent case, a judge found that a verbal settlement offer and subsequent contribution payment towards repairs could not constitute a genuine full and final settlement because statutory rights were denied misleadingly. The customer lacked sufficient information to make an informed decision to settle and neutralise the potential of future claims.
The seller had informed the customer that they had no right to reject the vehicle within the first 30 days and could only seek a repair, to which a contribution was offered. While a rejection demand may have no merits, it remains a right that customers are entitled to explore.
We believe that had Lawgistics drafted the settlement and dealt with the matter before it escalated, a court appearance may have been avoided. At the very least, a valid settlement agreement would have been in place.
This is why you should utilise your membership with Lawgistics. If you are considering making a settlement offer, contact our legal advice helpline for guidance or send in the documents for one of our advisors to draft a settlement offer or agreement for you.
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