Is it a legally binding contract?
In order to know your rights under sale of goods and/or service agreements, it is important firstly to understand the basic principles of contract law. Contract law is all about enforcing promises and making them legally binding irrespective of whether there is something in writing to this effect. Despite the word ‘contract’, and contrary to popular belief, a written contract is not required in order for these obligations to exist in law. A contract may also be formed verbally or by implication, simply by one party making an offer and the other party accepting that offer – even purchasing an item in a shop, or getting into a taxi are examples of this. Of course it must be proved that both offer and acceptance were clearly communicated and understood, that both parties were legally capable of making those promises, and there was something being offered in exchange for the promise (usually money). And while ‘putting it in writing’ is not necessary for a legally binding contract to exist, as the next section will show us, it may be hard to prove what was otherwise agreed.
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Hi , can anyone help me out?
I was selling my vehicle on eBay and about a day before the auction was to end, I had a phone call from a potential buyer who asked me how much I would accept for the vehicle. I told him the amount and he promptly visited me and paid a 10% deposit. When I went to cancel the listing on ebay, I found that someone had placed a bid on ebay and that I was unable to cancel the auction due to it having less than 24 hours till it was due to end. The secound buyer visited almost immediately and paid for the vehicle and took it away. When I found out about this mistake , I did contact the original buyer who had left a deposit and explained the situation to him, however, he was very angry and upset and informed me that he would be taking me to court as i had broken the contract. I had contacted him to explain and to ask for his address to return his deposit to him.
Now, I have received a letter from this guys solicitors stating that he wants his initial deposit back plus £30 fee which the guy paid to transfer the insurance which he had taken out on the vehicle and another £300 to compensate him for his disappointment. A total of £500. the letter says that I must make payment in seven working days or it will be referred to the courts!
Can anyone help me out with this situation or point me in the right direction for me to get some advice?
I saw a camper van on e-bay and consequently made an offer via phone on it which was accpeted. I then transferrred a deposit of 400 pounds to the seller’s bank account. A few days later he said that the funds were not in his account and that the auction would go ahead. It did and the buyer paid more than we had agreed to pay. The next day the seller contacted us to say that the seller had pulled out and that we could have the van but at a higher price now. We agreed and travelled from Sussex to North Wales to pick it up. It turned out to be unfit for purpose (mould growing inside the vehicle by the driver’s feet, electrics that didn’t work, bodywork badly patched up) none of this had been mentioned in the advert or on the phone. We decided not to buy and the seller returned 80 punds saying it was all he had and that he would lose money on the vehicle as we had messed him around. We agreed that he should return at least 200 punds. He promised to readvertise straight away and that if he got the same price he would return the full 400. He did not readvertise having decided to keep the van and has not returned any money. He is not responding to e-mail or texts. Are we in a strong position to reclaim the money through small claims court or was he legally entitled to keep the deposit?
hi lou i had that and told the seller i was not going to buy he said he take me to court i let him as i printed out the add and what he had said about the item i won the case and go como as well
i allways tell people to read the item and print it of so you have back up
Lou, Sale of Goods Legislation makes mention of three statutory rights – legal title, description and quality. Unfortunately the right to quality does not apply if you have bought from a private seller, but description does. So, if the description was misleading, and you were given the impression from the advert that there would be no issues of the kind you saw, you can claim back the money claiming breach of your statutory right. the fact that you were reliant on the description because you had not seen the vehicle in person puts you in a stronger position.
Hi,
Is it correct that under the Consumer Credit Act 1974 Catalogue debts are not enforcablein law unless a signed agreement is produced by the creditor?
Peter, In a nutshell, yes. Although it is any kind of debt under a regulated credit agreement, not just those to do with catalogues. If the creditor fails to supply a signed copy of the credit agreement within 12 days, the creditor is said to be ‘in default’, and cannot enforce the debt against you while this ‘default’ continues. If the period extends to one month, it becomes a criminal offence. You can pursue the debt collection agency for this document although you must pay a £1 fee for each request.
‘Offence’, yes, but it isn’t a ‘Criminal Offence’.
Hi I hope you can help us
My wife and I applied for a loan online a couple of years ago (13/06/2007) we completed the whole credit agreement online. We were never sent all the required documentation, it wasn’t until recently we were finally sent the following information we requested this when we first took out our loan it wasn’t until recently when trying to sort out our finances we noticed we had not been sent the following information.
The loan amount
The charge for credit
The total amount payable
The monthly instalments
The Annual Percentage Rate (APR)
As this was an online credit agreement no paper work changed hands although it did state that we would be sent a written agreement that we would need to sign and return. We have never received or signed a loan agreement, does the bank still have to provide us with a signed loan agreement to make this credit agreement legally binding.
So basically what I’m saying is if you apply for something online should you or should you not sign a paper agreement as well and if you should sign something and haven’t does that mean the contract is not legally binding.
Please I hope you can help because we don’t seem to be getting anywhere with the bank
Anthony, because you applied for the loan online, the governing legislation will be the Financial Services (Distance Marketing) Regulations 2004, as far as pre-contractual info is concerned. you do not have to be presented with this as a hard copy, the new regs state:
“…or in another durable medium which is available and accessible to the consumer.” i.e. a PDF will do, although it must be prominent, easily distinguishable and separate.
There is still required pre-contractual info on distance credit agreements, just as there is on face to face contracts. The amount of info required is vast, but in a nutshell must include:
• the name and address of the creditor
• a description of the main characteristics of the credit
• the total price payable for the credit
• the arrangements for payment, and
• information regarding cancellation or termination (your 14 day cooling off period)
You can find out more here (refer to schedule 1):
http://www.opsi.gov.uk/si/si2004/20042095.htm
Under the CCA, the agreement must be signed in order to be executed and you can request a copy of the executed agreement at any time – which the creditor must supply within 12 days. There is also a duty on the creditor to provide statements (after intervals of not more than one year). If the creditor cannot do either of these things, they cannot enforce the agreement or charge you interest during their period of ‘default’
Catriona thank you for your advice, i have looked at the info provided and still note that the bank we took the loan out with should have still provided us with the following information:
• the name and address of the creditor
• a description of the main characteristics of the credit
• the total price payable for the credit
• the arrangements for payment, and
• information regarding cancellation or termination (your 14 day cooling off period)
some of this information was displayed on the screen during the application process but not in any other form after the loan had been agreed, it did say online once we had finished the loan application that we would get some information sent to us detailing all the above info but was sent nothing in any form?
So my question is has the bank negated from thier contractual obligations of providing us with the above information in some form ie, email, PDF or even paper?
Anthony, partly in response to your query I have restructured the entire CCA section of this site, see:
whatconsumer.co.uk/consumer-credit-act-required-information/
You must be provided with a separate document containing the required info (either hard copy or PDF), it cannot simply flash up on screen and disappear again. You can request a paper copy at any time, along with your original credit agreement and statement of debt. If they cannot produce this within 12 days the debt is legally unenforceable (without a court order). On the basis of what you’ve told me, yes, the bank are in breach of their legal obligations.
Hi, i have put a deposit on a horse, we now pay for the horse, the deposit is not refundable, but the horse is coming over from Holland any way, no matter what, because the lady we have bought it off the breeder, she is just the middle lady and has bought the horse with a profit, because we can’t pay for the horse, she is saying she will take us to court, for all her losses, because we are in a binding contract that we never knew about. She has started phoning us with a withheld number and texting my daughter, (because I don’t no mine) saying things that are worrying her, kind of abusive. What do we do?
Thanks
Abi
Hi, i have put a deposit on a horse, we now pay for the horse, the deposit is not refundable, but the horse is coming over from Holland any way, no matter what, because the lady we have bought it off the breeder, she is just the middle lady and has bought the horse with a profit, because we can’t pay for the horse, she is saying she will take us to court, for all her losses, because we are in a binding contract that we never knew about. She has started phoning us with a withheld number and texting my daughter, (because I don’t no mine) saying things that are worrying her, kind of abusive.
What do we do?
Thanks
Abi
if i got a binding contract with a creditor and they turn my account over to a collection agency. even if they have my old contract from that creditor by law who do i owe money to .when i called the creditor to make arrangments to pay my bill,they say my account is closed and to make payments to agency and agency will pay them.
,
I bought a sunbed from eBay, it was a buy it now or best offer I arranged to get it to be collected by a man with a van due to it’s size when the sunbed was delivered to me I found it to be not working I contacted the seller who said she would refund my money and ask me to return the sunbed I hired another man with a van to return the sunbed the seller called when the sunbed was half way back and said she wouldn’t be giving a refund the sunbed is now back in the sellers garage I have paid for this and £80 in vans I have reported it to eBay and there final response is that because I didn’t pay by paypal and the item was collected they have decided in favour of the seller, I would have thought that because the contract was entered in to when we agreed a price online i would have the same rights ?? Also I didn’t collect the item and even if I had of done I could not have tested it before taking it away as stated in the advert it can not be used in her rented accommodation due to the landlord.
In a console game’s EULA, does a provision forbidding resale purport to act in restraint of the pre-owned trade, and is the EULA thus void ab initio?
I recently booked a holiday cottage and paid a deposit. A key factor in choosing the property was the availability of off-road parking near to the entrance. The advert made it clear that there was off-road parking and I checked this before booking using Google Earth and Streetview. There were no terms and conditions available anywhere and the requested deposit was 50% (£205) which I paid.
Four days before I was due to arrive it became clear that there was no off-road parking, instead I would need to park up to 200yds away, either on a road or in a public car park. It also became clear that this was due to significant building work being undertaken involving scaffolding some 8 ds from what was described as a peaceful location.
I cancelled the booking and requested a full return of my deposit.
I believe that the person letting the property mislead me, perhaps unwittingly, and that the provision of off-road parking was a provision of our (unwritten) contract, as it formed a part of his offer.
My question is; Am I right in believing that this is a breach of contract?
I think I am, because as I understand it, in the absence of any other conditions (and none were explicit in the advert or subsequent communication) our contract is based on the offer by the vendor, my acceptance of that offer and the exchange of a consideration (the deposit).
I am hoping that the vendor will agree and refund the deposit, but if not, I would like to know if I have reasonable grounds to take this through the small claims procedure.
Jeremy
hi. i bought 2 sets of geret camping chairs with side table from ebay. as i show dogs and would be great for around the ring, on my 1st outting at a show we were sitting around the ring when we heard rip and 1 of the chairs ripped halfway along where the fabric goes round the bar on the seat part, lucky no-one was hurt and on examing the other 3 chairs i have noticed that at least 2 of them are fraying along the same stitches as the 1 that ripped, i have contacted the seller and have had no response, the are still selling on ebay and have 100% feedback so i thought i was buying from a honest seller, sorry forgot to say that bought these a few months ago but this weekend was the 1st time i ussed them. where do i stand and what can i do. emms
Hi
We had some work done on our house in February of this year,which involved UPVC gutters,downspouts,fascias and soffits.Approximately 5 weeks ago,some of the “dry edging” became dislodged on the gable end,and ended up on the ground due to strong winds.
We contacted the company,who at first said that the dry edging was not under guarantee (which we have never received),but eventually said that they would send someone to sort the matter out.Many letters/phone calls have since been sent/made,which seemed to have no effect until this Saturday when 2 workmen arrived.
Having looked at the problem,they said they would need to get some parts,and if they did not return that day,then they would see us on Sunday.
Of course,they did not return,and we are no nearer to getting the job done than we were 5 weeks ago.We have been told that if we take the matter to the “small claims court”,it could drag on for quite a while,and could possibly cost us more than the job is worth.
We are beginning to lose all hope of the matter being sorted out to our advantage,we contacted our local trading standards,but the advice given did not seem all that positive,anyone any ideas?.
I spent ages scouring the internet for an Orbea Carpe Diem S10 60cm bike. The best price was quoted via e-mail on 02/06/11 by Epic Cyles of Worcester £1549. Next best was Winstanley at £1649 followed by a host of others at £1725.
I was in regular contact with Epic and agreed to buy the bike and i told them that i was getting a personal loan from my employer and that i would send the cheque asap.
Whilst i was awaiting the cheque, i contacted Orbea Uk and enquired why i could not purchase the bike locally to my home for the Epic price of £1549.
After i received the cheque and sent it off, i received an e-mail from Orbea UK stating that Epic had made an error and could not supply the bike for £1549.
When Epic received the cheque they reitterated the Orbea e-mail and asked for an extra £100. I declined saying i had a legally binding contract but they have sent the cheque back stating a seven day quote rule on their website (something they omitted to say via e-mail.
I am of a mind to go legal and ask for the bike at the agreed price plus compensation. I can supply all the e-mails if you wish.
whats your view ?
Hi we bid successfully on ebay for a motorhome. they describe the motorhome but no photos or description of any rust, or damaged or non working appliances. which is a good thing. we were asked about payments and then said if pay by cheque, will need to wait till it cleared before we take the motorhome. i said ok. then she asked to pay £ deposit to pay pal to hold the motorhome till the weekend. Now that wasnt stated in the bid page nor agreed upon. what should i do? I am a genuine buyer but my main concern is whether the product is as describe and fit for purpose as i am going to use it with my 4 young children and safety is paramount. and i am sure once you make payment and items faulty, it would be difficult and time consuming to get refund as seen from your other comments. can anyone advise how i should go about doing proper checks. ie what do i need to look out for and can i request the seller to show everything in working order and show us how to work everything? should i check whether vehicle is genuine and not two pieces put together which may not be safe to drive! or stolen? please help as i am doing this motorhome thingy as a tryout and not wish to mess it up as it does involve payment of thousands of £ for a rather old motorhome.
Hi,
I wish to leave my employment to start another job however they want me to start within a week and in the statement of employment it states I have to give a months notice but I have not signed it. Do I still have a legal requirement to stay at the company?
I stood as a guarantor for a female colleague at work in 2009 for a loan of £3000.00 with a company called FLM. According to FLM’s own business practices, the money was paid into my account for me to transfer to the principal borrower. Rather than pay the £3000.00 I guaranteed, FLM only paid £914.37
The principal borrower has now absconded and cannot be found. FLM is demanding me to pay £3000.00, the amount guaranteed rather than the amount paid into my account to transfer to the principal borrower.
Question: What are my rights under these circumstances. Do I owe FLM the amount guaranteed or the amount received into my account?
Thanks for your help.
IANAL, but I would say that you’re only legally obligated to pay the amount transferred into your account by the loan company, and if they keep demanding more than that, that might be constued as an act of fraud and misreprentation.
My brother loaned his ex-girlfriend nearly £4000 at her request.
She wrote a letter to him to the request money, stated repayment terms and he wrote back to agree. They had recently broken up at the time. She was also pregnant with his child.
After over a year of promises that she would return the money, she finally said he could forget it as it was the least he could do after breaking up with a pregnant woman.
Can he take her to court? He still has the original letter and all the isntances where she has said she is happy to pay but just needs another week then another month..
I need to know specifically what law applies here? So we know whether he has a pass or fail on meeting the law’s requirements.Is it contract law? As in does he just have to prove there was a binding legal contract? Can there be a binding legal contrac if people were boyfriend and girlfriend? Given that neither one of them seems to be able to pinpoint a clean break-up point.Worried because she clearly didnt want to be dumped andw ent to pains to keep sending lovey-dovey emails which my brother chose to ignore the judge may say you two were still together therefore this is not a loan.
Please help. My brother is a student and none of us can afford to just take this kind of a hit. He has been paying to support the child and monther including prenatal costs despite all this even though apparently he is not obligated to.
I was cold called yesterday and pressured into agreeing to a service but I do not want the service. The lady was so convincing. She took my credit card details and told be to reply to an email. Saying “I accept”. When I realised how stupid I was a rang back up to cancel no more than an hour after accepting. They want six monthly payments for the service now although I don’t need or want the service. They said there is no cooling off period.
I want to know if the email i sent saying “I accept ” legally binding
Many thanks
Hi all, hope someone can help my fiancée,
She recently caught a taxi at a rank while working away in Chester. The diver took her to the b and b and then offered to pick her up in the morning to take her to her job. She accepted and he duly picked her up the folloeing morning. On the way there the taxi had a bad puncture and my fiancée had to inform the driver that something had happened because he continued to drive on. He stopped and rather than call his firm, he asked his wife to come and pick her up and take her the rest of the way. Before doing so, the driver also offered to pick her up after her job ended. She said that was fine and she finished at 2pm. Nothing written was signed.
She ended up finishing early and didn’t have the number of the firm the driver worked for so instead got a number from the venue she was working at and used their service.
The original driver then called the b and b and they (illegally) gave my fiancées full name, address, and phone number to the driver. He is now threatening to take us to court over the 25 pound fare he was “promised”.
Also, we have asked other local taxi firms if the fare was reasonable and they all claim it should be closer to 14 pounds.
Does he have a leg to stand on or is he just taking advantage of a young girl who doesn’t know the area?!
P.s. the police assure us he is very close to being classed as harassing us now as well.
Any help would be appreciated, thanks a lot guys!