13/02/2009

When can you back out of a purchase?

Too late! You have signed a contract in accordance with the rules and neither the seller nor yourself is free to back out of the implementation of the contract.

A sale contract comes into existence as soon as the buyer and the seller agree on the object and the price.

However, the law on trading practices does provide for a few exceptions: in a few, well-defined circumstances, the consumer may decide not to proceed with his purchase within a certain time limit, without additional costs and without having to state a reason. This is known as the right of withdrawal.

Exception 1: Contracts concluded at a distance

This concerns mail order purchases and purchases by internet, by telephone or by fax.

In these cases the consumer may withdraw from the purchase within 7 working days from the day after the goods were delivered or from the day after the contract was concluded for the provision of a service.

This does not apply however to the purchase of, for example, newspapers, CDs, lottery tickets or gambling.

The consumer does not have a right of withdrawal when he buys an airplane ticket, reserves a hotel room or orders a meal.

Exception 2: Contracts concluded at a distance from the seller’s company

This concerns sales that are made:

At the buyer’s house (door-to-door selling)
At the house of another consumer
At the consumer’s place of work
During an excursion organised by or for the seller
During shows, trade fairs and exhibitions.

The consumer has the right to back out of his purchase within 7 working days following signature of the contract, except if the consumer expressly asked the seller beforehand to visit him in order to negotiate the purchase.

As regards purchases made during shows, fairs or exhibitions, the consumer has the right to withdraw, provided that the price of the goods exceeds €200 and he has not paid the entire amount on the spot.

Exception 3: Insurance contracts

In the case of insurance contracts with a duration exceeding 30 days and provided that the consumer has signed a pre-signed policy or an application for insurance, both parties have the right to withdraw from the contract within 30 days from the date that the insurer receives the pre-signed insurance policy.

Exception 4: Consumer credit

When it comes to applying for consumer credit, the consumer has a cooling-off period of 7 working days starting from the signature of the contract with the exception of hire purchase contracts, leasing and instalment plans, where the amount is less than €1250.

The right of withdrawal also applies if the contract was signed in the presence of both parties at a distance from the lender or credit broker’s company.

In conclusion

Because of the burden of proof, the buyer is advised to notify the seller that he is withdrawing from the contract by registered letter.