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Future services contracts are subject to some important statutory requirements under Part 4, Division 2 of the ''BPCPA''. | Future services contracts are subject to some important statutory requirements under Part 4, Division 2 of the ''BPCPA''. | ||
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 ''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, there also needs to be a description of the subject matter of any security interest. This is '''not''' an exhaustive list; please consult the Act. | ||
Under s 23, 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). | |||
=== 1. Right of Cancellation === | |||
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)). Section 54 sets out the required form and procedure for giving notice. (See Section V.A.1). | |||
== C. Travel or Vacation Clubs, “Book-of-the-Month”, and Record Clubs (Continuing Services Contracts) == | |||
These contracts are called continuing services contracts because, while you may pay now, the contract extends into the future. This type of contract is often used when one joins a karate club or a dance studio, buys a membership in a vacation club, or joins a “book of the month” club. Continuing services contracts must not exceed 24 months in duration. However, a contract can allow the consumer to renew in writing within one month of its expiry, and if the consumer exercises this option, the contract can continue past 24 months (s 24(3)). If a contract does exceed 24 months in duration, there are remedies available under s 24(6). 1.Right of Cancellation Because they are often sold at high-pressure presentations, under s 24 these contracts are subject to a 10 day right of cancellation from the date the consumer receives a copy of the contract (s 25(6)). Section 26(3), which also gives a 10 day right of cancellation, applies to time-share interests not covered by the Real Estate Development Marketing Act, SBC 2004, c 41, such as resorts or condominiums. Contracts for continuing services can also be cancelled if there is a material change in circumstances of the buyer or the seller, and where the buyer or seller gives notice of cancellation (s 25).When alleging a material change in circumstances as the basis for cancelling, the reason must be specified in the notice (s 25(2)). Material changes in circumstances include, but are not limited to: the buyer’s death; and permanent disability or permanent relocation further than 30 km from the seller. Material changes in circumstances of the seller include: through the partial or entire fault of the seller, the services are not completed, or at any time the seller appears to be unable to reasonably complete the services in the time frame set out in the contract for the completion of services; the services are no longer available because of the seller’s discontinued operation or substantial change in operation; and | |||
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