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refunds and contracts and agreements – oh my!

by wedbykez on March 3, 2010

Organising a wedding can be a logistical and emotional nightmare, particularly if something goes wrong. The good news is that there are laws in place to protect both the consumer and the business however it pays (or sometimes refunds) to do your research.

Some wedding providers may ask you to sign contracts – and it’s worthwile to bookmark Fair Trading and the ACC so that, in the event something does go wrong, you know where to go with any concerns.

Here’s what I learnt today by having a sneek peek at these websites:

What is a contract?

A contract is a legally binding agreement between two or more people. Contracts can be oral or written. Whenever you purchase something, you are actually entering into a contract with the seller and a contract can be made without a party being aware of it.

For example, a bridal store promising to obtain a garter for a bride and taking a deposit from the customer is entering into a contract. By the bridal store accepting the deposit and the bride offering to pay the balance later, a contractual arrangement has been agreed to.

What is a statutory right?

Statutory rights are your rights by law and cannot be refused, changed or limited by the seller. These rights can even overule any signed contract. For example, a contract may have a clause saying ‘no refunds’ however the law actually gives people a non-excludable right to a refund under certain circumstances.

What’s the go with refunds?

You are entitled to ask the trader for a refund if the item you bought is

  • not of ‘merchantable quality’
  • not the same as the sample shown or described in advertising or by the salesperson
  • not fit for the purpose you made known to the trader and you have relied on the trader’s judgement.

You are not automatically entitled to a refund if you simply change your mind or you later discover that you picked the wrong colour or the item doesn’t fit. (Damn it – ed!)

What’s the go with deposits?

A lot of people think deposits are refundable. But when you place a deposit on an item, you may be entering into a binding agreement to proceed with the transaction. If you change your mind, the trader may be entitled to retain all or part of your deposit.

In short before signing or committing to anything you should

  • be sure they really want and know what they are signing for. If in doubt, take time to consider the contract carefully;
  • read every word – including the fine print;
  • seek legal advice if they don’t understand the contract;
  • not be pressured into signing anything;
  • if necessary, take the contract home overnight and read it through;
  • never sign a contract that contains blank spaces;
  • make sure that all parties initial any changes that are made to the contract they sign;
    always get a copy of any contract they sign.

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