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

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