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

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When consumer is approached by a salesperson, instead of making a conscious decision to seek out a product  or  service,  they  may  be  taken  unawares and can be vulnerable to being taken advantage of. The ''BPCPA'' recognizes this risk by imposing disclosure requirements and allowing a consumer to cancel the contract in ways the common law of contract does not permit.  
When consumer is approached by a salesperson, instead of making a conscious decision to seek out a product  or  service,  they  may  be  taken  unawares and can be vulnerable to being taken advantage of. The ''BPCPA'' recognizes this risk by imposing disclosure requirements and allowing a consumer to cancel the contract in ways the common law of contract does not permit.  


A direct sales contract is defined in s. 17 as:  
A direct sales contract is defined in s 17 as:  


...a contract between a supplier and a consumer for the supply of goods or services that is entered into in person at a place other than the supplier's permanent place of business, but does '''not''' include any of the following:  
...a contract between a supplier and a consumer for the supply of goods or services that is entered into in person at a place other than the supplier's permanent place of business, but does '''not''' include any of the following:  
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*(a) the purchaser may cancel the contract within 10 days after receiving a copy of the contract. The purchaser need not offer explanations for his or her decision. The vendor then has 15 days after the date of cancellation to refund all money without deduction.
*(a) the purchaser may cancel the contract within 10 days after receiving a copy of the contract. The purchaser need not offer explanations for his or her decision. The vendor then has 15 days after the date of cancellation to refund all money without deduction.
*(b) if a delivery date is specified in the contract and not all of the goods/services are delivered/performed within 30 days of this date, the purchaser may cancel the contract within one year after the date a copy of the contract was received, provided that the purchaser has not accepted or used the goods/services;  
*(b) if a delivery date is specified in the contract and not all of the goods/services are delivered/performed within 30 days of this date, the purchaser may cancel the contract within one year after the date a copy of the contract was received, provided that the purchaser has not accepted or used the goods/services;  
*(c) if the contract does not contain information required under s. 19 and 20(1) of the Act, the buyer may cancel within one year of the date of the contract. A direct sale is unenforceable by the seller if the buyer is required to make a down payment in excess of a prescribed amount (''BPCPA'', s 20(3)(b)).
*(c) if the contract does not contain information required under s 19 and 20(1) of the Act, the buyer may cancel within one year of the date of the contract. A direct sale is unenforceable by the seller if the buyer is required to make a down payment in excess of a prescribed amount (''BPCPA'', s 20(3)(b)).


'''NOTE:''' Whether the purchaser has '''accepted''' goods is determined by the definition in the ''Sale of Goods Act'' (s. 39).  
'''NOTE:''' Whether the purchaser has '''accepted''' goods is determined by the definition in the ''Sale of Goods Act'' (s 39).  


The ''BPCPA'' does not make oral executory contracts unenforceable. However, s 20 requires that the seller deliver a written copy to the buyer at the time of signing, or the contract is not binding on the buyer.  
The BPCPA does not make oral executory contracts unenforceable. However, s 20(3) requires that the seller give a written copy of the contract to the buyer at the time of signing.  Otherwise the contract is not binding on the buyer.


Section 54 requires that the buyer provide notice of cancellation to the seller, and declares that it may be delivered by any method that permits the cancelling party to produce evidence that the contract was cancelled. Notice by registered mail, electronic mail, personal delivery, and fax is explicitly  permitted. Nowhere does the BPCPA explicitly state that a notice of cancellation shall be in writing, but a buyer should be cautious and deliver written  notice. The section explicitly permits that the notice can be given to the seller directly, or to the postal, fax, or electronic mail address of the seller  shown in the contract. When a buyer rescinds a contract under s 21, that section also provides that the goods may be retained until all of the money paid is refunded.
Section 54 requires that the buyer provide notice of cancellation to the seller, and declares that it may be delivered by any method that permits the cancelling party to produce evidence that the contract was cancelled. Notice by registered mail, electronic mail, personal delivery, and fax is explicitly  permitted. Nowhere does the BPCPA explicitly state that a notice of cancellation shall be in writing, but a buyer should be cautious and deliver written  notice. The section explicitly permits that the notice can be given to the seller directly, or to the postal, fax, or electronic mail address of the seller  shown in the contract. When a buyer rescinds a contract under s 21, that section also provides that the goods may be retained until all of the money paid is refunded.


In ''Woodward v International Exteriors (British Columbia)'' Ltd (1991), 53 BCLR (2d) 397, 1 BLR 254 (CA), verbal notice of termination of an agreement was  sufficient for the consumer to terminate this form of contract. Note that verbal notice may not be sufficient in all instances and written notice remains advisable.
In ''Woodward v International Exteriors (British Columbia) Ltd'' (1991), 53 BCLR (2d) 397, 1 BLR 254 (CA) at para 10, verbal notice of termination of an agreement was  sufficient for the consumer to terminate this form of contract. Note that verbal notice may not be sufficient in all instances and written notice remains advisable.


== B. Future Performance Contracts ==
== B. Future Performance Contracts ==
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