Cancelling a Builders Contract - 7 day cooling period?

MrsJNair

Hi All,

I recently signed a contract with a tradesmen for my kitchen refurbishment. Unfortunately, due to various reasons, I have to cancel my contract with them.

The contract and terms and conditions says that if I cancel the contract anytime after signing it, I am immediately liable to £1,000 as cancellation fee. The work wasn't due to complete until 1st of November.

I checked with Consumer Direct and also with the UK legislation, to the best of what I can understand, there should have been a 7 day cooling off period from the date of signing of the contract. Also, if they have not given me this notice, then they are in violation of trading standards.

When I asked my trader about the 7 day cooling off period, I was told that this does not apply to them since they are a Sole Trader and not a Limited Company. From all the literature I read in the internet about cancellation of building contracts, I did not see any reference to Sole Traders.

The traders have now threatened me with a court action if I do not pay the cancellation fee by Monday.

Does anyone have any idea about this legislation?

Threatened and £1000 poorer,
Mrs J Nair

hcb42

what legislation have you checked?

what legislation do the builders believe they are exempt from as they are a sole trader?

browneyedbazzi

it's nothing to do with if they're a limited company or not - but how/when/where you agreed the contract does matter.

Under what circumstances did you sign the contract?

The 7 day statutory cooling off period applies to contracts that are made face to face in your home (or otherwise away from the tradesman's place of work).

MrsJNair

The contract was signed at my home.

I put up a job posting in MyBuilder.com, got quotes from a number of tradesmen and selected the specific trader based on reviews.

Before they came to my residence to sign the contract, we were communicating through MyBuilder, emails and phone.

They sent me the quote over the email. So I knew the amount I was signing up to before they came to my home to sign the contract.

At the time of signing the contract, they had supplied me with a copy of their terms and conditions which specifically talks about this £1000 cancellation fee. So I was aware of this then. But, at the time of signing them, I did not think about cancellation as I was very confident in my choice.

The legislation I was referring to was Door Step Selling Regulations 2008.

I do not know what regulation they are referring to which says that a sole trader is exempt from providing the customer the 7 day cooling off period.

MrsJNair

This is the link to the legislation I was referring to can be found by googling 'THE CANCELLATION OF CONTRACTS MADE IN A CONSUMER’S
HOME OR PLACE OF WORK ETC. REGULATIONS 2008'.

ThumbRemote

You seem to understand the law much better than they do. Just ignore them, you have validly cancelled the contract and they have no grounds for any action.

MrsJNair

Apparently, they have checked with their lawyer and were told that they are exempt because they are a Sole Trader.

hcb42

I think you should be ok. If the seller was claiming under anything it would be under the personalised or specific goods aspect, but as work is not due to start for three weeks, and you mention refurbishment, I imagine a lot of this is off the shelf stuff anyway e.g. cabinets and doors.

MrsJNair

I am supplying the kitchen units, appliances and tiles. The cancellation fee does not say anything about 'costs for expenses incurred' or anything like that.
Does having such a clause in the contract form an 'Unfair Term' in the contract?

Also, if the contract is with a Sole Trader, should the Sole Trader's name not be there in the contract? Or it is enough to only have the name of his company in the contract?

MeanParent

MrsJNair wrote: »

Apparently, they have checked with their lawyer and were told that they are exempt because they are a Sole Trader.

The sole trader is not an issue, the legislation will apply equally. What lets you down is the fact that you solicited him, it was not a cold call and as far as I can see you need to refer to section 6 here:

http://www.legislation.gov.uk/uksi/2008/1816/regulation/6/made

But £1k is a lot of money so you should visit a solicitors or Citizens Advice at the earliest opportunity.

A £1k penalty for canceling seems like a fine or penalty and this cannot normally be enforced. What the sole trader can do though is charge you his reasonable costs so far and that includes the cost of lost work if he cannot find work to replace the time he was going to spend with you.

It may be worth trying to negotiate with him but not before getting advice and so that his costs are kept to a minimum you need to do this asap.

Good luck!

MrsJNair

I believe you are referring to the highlighted section in the quote below:

Scope of application

6.—(1)These Regulations do not apply to

(d)a contract made during a solicited visit or a contract made after an offer made by a consumer during a solicited visit where the contract is—
(i)a regulated mortgage, home purchase plan or home reversion plan if the making or performance of such a contract constitutes a regulated activity for the purposes of the Financial Services and Markets Act 2000(1);
(ii)a consumer credit agreement secured on land which is—
(aa)regulated under the 1974 Act; or
(bb)to the extent that it is not regulated under the 1974 Act, exempt under that Act; or
(iii)any other consumer credit agreement regulated under the 1974 Act.

I believe that section (3) is explaining the 'solicited visit' in section (1). I do not think that this is referring to all solicited visits.

(3) A solicited visit means a visit by a trader, whether or not he is the trader who supplies the goods or services, to a consumer’s home or place of work or to the home of another individual, which is made at the express request of the consumer but does not include—

(a)a visit by a trader which is made after he, or a person acting in his name or on his behalf—

(i)telephones the consumer (otherwise than at the consumer’s express request) and indicates during the course of the telephone call (either expressly or by implication) that he, or the trader in whose name or on whose behalf he is acting, is willing to visit the consumer; or

(ii)visits the consumer (otherwise than at the consumer’s express request) and indicates during the course of that visit (either expressly or by implication) that he, or the trader in whose name or on whose behalf he is acting, is willing to make a subsequent visit to the consumer; or

(b)a visit during which the contract which is made relates to goods and services other than those concerning which the consumer requested the visit of the trader, provided that when the visit was requested the consumer did not know, or could not reasonably have known, that the supply of such goods or services formed part of the trader’s commercial or professional activities.

Or have I completely misread it?