Different types of cancellation rights
Different types of cancellation rights

The following Practice Compliance practice note provides comprehensive and up to date legal information covering:

  • Different types of cancellation rights
  • Which clients do the regulations apply to?
  • Which contracts do the regulations apply to?
  • What is an off-premises contract?
  • What is a distance contract?
  • Distance communication
  • Organised distance sales or service provision scheme
  • Different requirements for off-premises and distance contract

From 13 June 2014, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 replace the Consumer Protection (Distance Selling) Regulations 2000 and Cancellation of Contracts made in a Consumer's Home or Place of Work etc Regulations 2008. This Practice Note will help you understand whether the Regulations apply and, if they do:

  1. whether you need to comply with requirements about distance contracts or off-premises contracts

  2. the differences in those requirements

The flowchart below gives a high level overview of when the regulations apply:

Which clients do the regulations apply to?

To have the benefit of cancellation rights under the Regulations your client must be an individual acting for purposes which are wholly or mainly outside their trade, business, craft or profession.

Which contracts do the regulations apply to?

A client retainer is a contract for services for the purpose of the Regulations.

The Regulations will apply if your retainer falls within the definition of:

  1. an off premises contract, or

  2. a distance contract

What is an off-premises contract?

The definition of off-premises contract has several alternatives:

DefinitionExample
(a) Contract concluded somewhere other than at your business premises in the simultaneous physical presence of you and the clientRetainer concluded:
—at the client's home, place of work or a hospital
—at a neutral venue, eg a hotel meeting room or café
(b) Contract for which an offer was made by the client

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