Recently, I have seen a few things to suggest there is a degree of misunderstanding over what constitutes an off-premises sale and when they come into effect.
I will, first of all, assume the trader runs an organised distance selling scheme. If they do not, then the regulations in the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 do not apply.
If a motor vehicle is sold in a location that is not the trader’s business premises, such as at a consumer’s home or during an event like a trade show, the contract would be considered an off-premises contract. This classification provides consumers with additional protections.
For instance, consumers must be given specific information before being bound by the contract, and they have a statutory 14-day cancellation period during which they can cancel the contract without giving any reason or incurring liability. If the trader fails to comply with the information requirements, this cancellation period can be extended.
The issue that confuses here is the legalise words “concluding a contract” which is the same as forming a contract.
A contract is concluded when the parties have agreed on all the terms that they objectively regard as essential for the formation of legally binding relations. This can occur even if a formal written contract has not been executed, as long as the essential terms have been agreed upon and the parties have acted in accordance with those terms.
So, the trader offers to sell the vehicle, and the consumer agrees to buy the vehicle and pays a deposit to secure the sale.
That is the point when the contract is concluded, as there is a fully binding agreement to sell the vehicle for an agreed price.
There is a myth, which I have seen online from numerous traders, that if both parties meet at the trader’s premises, where the remaining balance is paid and the remaining paperwork is signed, then this is where the contract is concluded.
This, I am afraid, is not the case.
Therefore, the conclusion of a contract depends on the agreement of essential terms and the communication of acceptance, which can occur through various means and under different circumstances.
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If you have any doubts concerning the Swasticar that you are selling to a customer who arranged to meet you in the local beer hall, then call Lawgistics. We can talk you through the pitfalls and ensure you are not giving away unwanted rights.
