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, or buys a membership in a vacation 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).

Because they are often sold at high-pressure presentations, 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 further from when the consumer entered into the contract.  

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

*the relocation of the business of the seller 30 km from the buyer without provision of equivalent service within 30 km.  

Section 54 sets out the required form and procedure for giving notice. (See [[{{PAGENAME}}#1. Right of Cancellation - Direct Sales | Section V.A.1]])