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DISTANCE TRADING – CONTRACTS MADE WHEN THE PARTIES ARE NOT FACE TO FACE



 If the two parties to a contract, particularly one dealing with the sale of goods, are not dealing with each other face to face, the buyer could be at a disadvantage in not seeing the goods described by the seller.

Two businesses dealing in this way could be thought to have enough resources to deal with this situation – it is in effect a business risk, and the buyer should take precautions such as asking for a sample, or later rely on remedies such as damages for breach of contract. A consumer in a similar position is vulnerable and, following a European directive, new statutory protection now exists.

The Consumer Protection (Distance Selling) Regulations 2000 are now in force, and although they have not yet been widely used, and therefore will need some interpretation, they represent a great step forward in updating the law of Contract to cover modern methods of trading.

The Regulations affect those who sell good or services to consumers (not where a business deals with a business) and apply where the sale takes place in one of the following ways:
Ø  By telephone

Ø  By fax
Ø  By mail order or catalog shopping
Ø  Over the Internet
Ø  Using digital television services.



Under the Regulations the seller must give the consumer clear information about the good or services offered before the sale takes place and must give written confirmation after the sale. 

The consumer then has a ‘cooling off’ period of seven working days. This means that if the consumer changes their mind during that time, they can cancel the contract without it amounting to a breach.


The Regulations do not apply to some contracts, including: 
Ø  The sale of land

Ø  Sales from a vending machine
Ø  Public pay telephones
Ø  Auction sales.


There are also partial exemptions, particularly in the areas of transport, accommodation and catering,and the right to cancel does not apply to some goods, such as perishable goods, newspapers, magazines, unsealed audio or video recordings or computer software, personalised goods, goods that by their nature cannot be returned.

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