Cancelling a contract

Ontario laws provide special protection for consumers purchasing "prepaid service" such as:

• health or fitness club memberships
• diet counselling
• talent development, modelling lessons, or "personal representation" by an agency
• sports club memberships, dance lessons, or martial arts training.

Here are some explanations of your rights when signing or cancelling a contract for these and similar services.

Q: I signed a contract for a prepaid service but I want to be cancelled.
A: If you bought a service, you can cancel by iving the operator of the business you dealt with a written notice of cancellation. You must o this within five days of signing the contract, or within five das of th service becoming available, whichever happens later. Send your written notice of cancellation by registered mail or have it delivered personally. You have five days to have it delivered or registered. Keep a copy and proof of delivery or registration.

Q: The five-day cancellation period has ended - am I stuck with the contract?
A: Maybe. If the contract isn't valid, you my be able to get out of it. For the contract to be valid it must contain certain information, including
-your name and address and the name and address of the other party to the contract
-a description of the services purchased and the price
-a description of any guarantees, or a statement thet there are no guarantees
-the number and amount of payment installments, if any
-any extra charges for paying by installment
-if any of the services are not available when the contract is signed, the date they will become available.
If it does not include all the necesary information, the contract cannot dbe enforced. The same is true if you did not receive a copy of the contract. To find out whether a contract is valid and can be enforced, see a lawyer or community legal clinic.

Q: How long can such contracts last?
A: Contracts for these prepaid services can last no longer than a year, but they can be renewed automatically. An operator of a business who wants to renew a ontract must give you written notice at least 30 (but no more than 90) days before the contract expires. If you don't want a contract renewed, give the operator written notice before the contract runs out.

Q: What if I misled, cheated, or taken advantage of y the salesperson?
A: As a rule, conumers in Ontario have the right to cancel a ontract for goods or services if an "unfair practice" led to the sale. Unfair practice means lying to or lisleading customers, or behaving unethically in other ways. It applies to all consumer sales, incluing door-to-door sales and prepaid services. If you are th victim of an unfair practice, you have the right to cancel a contract up to six months after signing it. You must do o in writing.
Th law defines tow kinds of unfair practice. The first involves making false or misleading statements. For examples:
--stating that the quality of a product or service is better than it really is
--suggesting that a service or repair is needed when it's not
--saying that the upplier belongs to, or represents, a particular organization, if this is not true
--saying there is a specific cost saving, if this is not true
--not informing onumers of n important fact.
This kind of false consumer representation can happen in person or through advertisments or letters. The second kind of unfair practice is refered to as "an unonscionable consumer representation". This unethical practice happens, for example, if sales staff:
--take adventage of a consumer's reading problems, language difficulties, or mental of physical disability
--grossly overcharge the consumer
--impose terribly unfair terms of sale
--put far too much pressure on the consumer.
Again, if you signed a contract as the result of an unfair practice, you have the right to cancel within six months. This must be done in writing. Return any goods you received, and ask for you money back. If you have already received part of the service you paid for, you may be able to claim the difference between what you paid and the value of what you paid and the value of what you received. Send a letter to the other party by registered mail or deliver in person. Say that you are cancelling the contract because of an unfair practice and explain why. Keep a copy of the letter. If you do not get your money back, ou can sue. On the other hand, if you still owe money according to the contract and you stop making payments, you might be sued. If this happens, you can deffend your actions by providing in court that you were the victim of an unfair business practice. You can use this defence evn if more than six months have passed since you signed the contract.

Q: What should I know next time?
A: Before signing a contract to purchase goods or services, make sure you are agreeing to what you want - nothing more, nothing less. Read the contract from beginning to end, including the back and the fine print. A contract is a binding legal agreement, and you need to know what is in it. If you want time to think about the terms of the contract - or if you don't understand everything it says - don't sign right away. Ask for a copy to read on your own, or with someone who can explain it. If there are things you don't agree with, draw a line through them in ink. Put your initials next to the crossed-out sections, and get the sales staff to put their initials next to yours.
If sales staff promise something that is not in the contract, get it in writing on company letterhead, with the staff's name and signature. Again, don't sign if they refuse. As a rule, what is in writing is what counts. Never give in to pressure. Sales people want you to sign, and some will rush you. No matter how good the deal sounds, take your time.