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Cancelling a contract

When can you cancel your contract?

  • If the trader breaks one of the important terms of the contract, in other words a 'fundamental' part.
  • If there is a term in the contract which gives you a right to cancel. Some stores have a policy allowing you to return unwanted goods in a certain number of days for a refund. Such a policy would then be a term in the contract.
  • If you buy goods for more than 5 from a trader who calls at your home, then you have 7 days to cancel.

  • If you buy goods on credit and the agreement is signed at home then you have 5 days from the date you receive the second copy of the agreement, to cancel.
  • If you sign a timeshare agreement in the UK, you have 14 days to cancel.
  • If you make a contract to buy goods or services over the telephone, by e-mail or over the internet, you have 7 working days in which to cancel, from the date the goods are delivered. With services, you have 7 working days after the contract is made, to cancel.
How do I cancel my contract?

Don't rely on phone calls. You have no proof of what was said in any conversation.

Send the trader a letter by recorded delivery post, within the time limit, stating that you want to cancel.

Remember to keep a copy of the letter. You normally have to return all the goods.