Direct Sales, Future Performance, and Time Share Contracts (11:V): Difference between revisions

A '''future performance contract''' is defined in s 17 as:

...a contract between a supplier and a consumer for the supply of goods or services for which the supply or payment in full of the total price payable is not made at the time the contract is made or partly executed, but does '''not''' include:

* A contract for which the total price payable by the consumer, not including the total cost of credit (amount to be paid later), is less than a prescribed amount of $50 (''CCR'' s 6);

* A contract for the supply of goods or services under a “credit agreement”, as defined in s 57 (definitions), if the goods or services have been supplied;  

* A time share contract; or

* A prepaid purchase card.

The ''BPCPA'' sets out a long list of requirements under ss 19 and 23 for the content of future services contracts, such as the name, address, and telephone number of the seller, a detailed description of the goods or services to identify them with certainty, the price, supply date, and a detailed statement of the terms of payment. When credit is extended (meaning that the supplier allows the individual/ buyer to pay all or part of the purchase price at a later date), there also needs to be a description of the subject matter of any security interest (e.g. collateral). This is '''not''' an exhaustive list; please consult the Act.

Under s 23(4), a future performance contract is not enforceable by the seller if a rebate or discount is given on the condition of some event occurring after the time the buyer agrees to buy (usually a referral selling scheme whereby the purchaser aids the seller in making a further sale).

If the future performance contract does not contain the required information (ss 19 and 23), then a consumer may cancel the contract by giving notice of cancellation to the supplier within '''one year''' of the date that the consumer receives a copy of the contract (s 23(5)). The required form and procedure for giving notice is set out in s 54.