Fixed Term Agreement Consumer Protection Act

(c) The value of goods that remain in consumer possession after withdrawal The following articles concerning the revocation of agreements may also be of interest to you: (a) the consumer is liable to the supplier for all amounts earned to the supplier under this contract up to the date of withdrawal; and finally, if you entered into a fixed-term contract prior to the publication of The CPA, do not despair, you can always find some protection in Schedule 2 of the CPA. (Section 3: Application of the Law to existing transactions and agreements), this section essentially provides that certain provisions of the CPA apply to existing agreements between suppliers and consumers in the following cases: (a) the maximum duration for fixed-term consumer contracts in general or for certain categories of such agreements; The values and principles of the CPA promote, among other things, a free market system in which the consumers of the system determine the price of goods and services on the basis of supply and demand and have the right to freely choose suppliers without undue restrictions. The CPA also compensates for the protection of consumers, on the one hand, and suppliers on the other. The main problems facing the industry with respect to the CPA are the provisions of Section 14, which limit the duration of fixed-term agreements to 24 months (unless certain circumstances can be proven) and give consumers the right to terminate the agreement at 20 working days in advance. In the event of termination of the contract/contract before expiry for any reason other than the supplier`s modification without the consumer`s consent (unilaterally), the consumer must inform the supplier in writing 20 days in advance. The consumer remains responsible for payments made until the end of the withdrawal period, which is subject to an appropriate withdrawal penalty. Regulation 5, paragraph 1 of the CPA provides that the maximum duration of fixed-term consumption contracts is 24 months from the date the consumer signs, unless section 14, paragraph 4, simply specifies that the Minister can set the maximum term for various fixed-term contracts, most of which are two years in length. It also provides for the nature and form of communication, as well as the nature, form and basis of the setting of credits and royalties, as well as other related and incidental issues for temporary agreements. It is not quoted here to the letter.

If you need more information about terminating a fixed-term contract or if you can best protect yourself when you enter into a contract, contact Pagdens on 041 502 7200 or send us your request and we will return the amount for which the consumer is still responsible for the supplier until the time of cancellation. Temporary agreements are a common feature of daily business life. It is likely that you are already a party to one or more temporary agreements or that you will enter into such an agreement in the future. Whether you are a supplier or a consumer, you should be aware of the evacuation route in Section 14 of the CPA, which allows for the early termination of a fixed-term contract. With regard to termination, the law provides that the consumer, regardless of a contrary provision of the consumer contract, can terminate the agreement without penalty or charges at the end of his temporary period. There are some situations in which it may be desirable to grant consumers a general right to terminate temporary agreements, but it is very worrying that this may also lead to undesirable results, given that there are good business reasons why parties enter into agreements and why longer notice periods are often necessary. The CPA does not define temporary agreements. However, the term likely refers to agreements between a supplier and a consumer that persist until a date specified in the agreement or for a specified period of time.