Script 255 gives information only, not legal advice. If you have a legal problem or need legal advice, you should speak to a lawyer. For the name of a lawyer to consult, call Lawyer Referral at 604.687.3221 in the lower mainland or 1.800.663.1919 elsewhere in British Columbia.

This script first discusses door-to-door sales, fitness club memberships and other similar contracts, and how you can cancel if you want to back out. Then it discusses time-shares and time-share contracts.

Most door-to-door sales and similar contracts are “future performance contracts”
Perhaps you’ve signed a contract with someone who came to your home and sold you a magazine subscription, or a vacuum cleaner, or home repairs. Or perhaps you’ve gone out and signed up to join a health club. These are typically known as future performance contracts.

A future performance contract is one where delivery of the goods or services, or the payment, isn’t completely made at the time you sign the contract. For example, you agree to buy a vacuum cleaner and pay it off over six months. Or you agree to buy an encyclopedia set which will be delivered in installments. Or you agree to join a health or fitness club and pay a monthly membership fee for one year.

A future performance contract must include certain things
If the total purchase price is $50 or more, the Business Practices & Consumer Protection Act lists all the information the contract must include to be legally binding. Among other things, the contract has to be a written contract signed by you, and it must:

• show the date
• include the name, address and telephone number of the seller
• describe the goods or services
• show other costs, including taxes and shipping charges, as well as the total price
• include a detailed statement of the terms of payment

You must be given a copy of your contract within 15 days after signing it. If the contract you get doesn’t contain all of the things listed in the Business Practices & Consumer Protection Act, then you have up to a year to cancel the contract.

One type of future performance contract is a “direct sales contract”
A direct sale is a door-to-door sale or a contract signed away from the seller’s normal place of business. And there’s a limit to the down-payment the seller can ask from you. If, for example, you buy a vacuum cleaner from a door-to-door salesman who comes to your home, or you sign up for an encyclopedia subscription at your Fall Fair, the direct seller can’t ask for a down-payment of more than $100 or 10% of the purchase price, whichever is less.

Another type of future performance contract is a “continuing services contract”
A continuing services contract is a specific type of ongoing contract where the services are provided over time, for example, a contract for dance lessons or a health or fitness club membership. With these, the contract can be for no more than two years.

Can you cancel these contracts?
Yes. Whenever you sign a direct sales contract or a continuing services contract, the law gives you up to ten days to cancel the contract after receiving a copy of it. In fact, the contract itself has to state that you have this right to cancel at any time within the ten days.

What if you don’t receive the goods or services?
If it’s a direct sale, and you don’t receive the goods or services within 30 days, you have up to a year to cancel. So if you don’t receive the promised vacuum cleaner within 30 days or the fitness club isn’t ready to be used within 30 days, then you have up to one year to cancel, so long as you don’t accept the goods or services later.

What if circumstances change?
For a continuing services contract, you can also cancel if there’s been a significant change in either your personal circumstances or the services that the seller was going to provide to you. For example, say you signed up for dance lessons but then broke your leg skiing, or you moved 30 kilometres or more away from the dance studio. Or say you signed up for tango lessons and the seller now only offers tap dancing classes. In each case, you’d have the right to cancel out of the rest of the contract.

How do you cancel?
It’s best if you cancel the contract by fax, e-mail or registered mail, or by delivering a notice to the seller indicating that you’re cancelling. Just be sure to keep a copy so you have proof that you cancelled within the allowed time.

Will you get your money back?
For direct sales and continuing services contracts, if you cancel the contract within 10 days, you’re entitled to a full refund of your money within 15 days after cancelling – even if you’ve already received the vacuum cleaner or started going to the fitness club. In the meantime, you can hang on to the vacuum cleaner until you get your money back. Also, for direct sales, if you don’t receive the goods or services within 30 days and you cancel within a year without ever taking them, you’re entitled to a full refund within 15 days after cancelling.

What if it’s a continuing services contract and you cancel partway through?
If you cancel because there’s a significant change in your personal circumstances – like being seriously injured or moving to another city – you’re entitled to a pro-rata refund based on how much of the service you’ve used, less 30% to cover the seller’s costs. If you cancel because the seller’s services have changed – like offering different dance lessons or moving their dance studio – you’re entitled to a straight pro-rata refund without any deduction.

What happens if the seller doesn’t give you a refund?
Then you can sue for a contract debt, normally in Small Claims Court. If you win, the seller must pay you three times the amount of your refund.

What is a time-share?
Time-sharing is a legitimate form of owning an interest in property. Often, the time-share is for one week of time or use at a vacation resort. Typically, you go to a presentation, tour a condo unit and then sign a contract. But before you sign anything, make sure the deal is right for you. And don’t sign a contract unless you understand it completely.

Can you cancel a time-share contract?
BC’s Real Estate Development Act says that if you make the contract here in BC, and later decide you acted too quickly, you can back out of the contract if you cancel within seven days. This applies whether the time-share relates to property in or outside of BC. However, and this is very important, if you sign a deal outside of BC, say in Mexico for a Mexican time-share, BC’s Real Estate Development Act won’t apply, and the law of that country will apply.

Where can you get help or more information?

• To help protect against unscrupulous sellers, check the seller’s record with the Better Business Bureau, available online. For mainland BC, the website is www.bbbvan.org. For Vancouver Island, the website is www.bbbvi.ca. Or phone the Better Business Bureau at 604.682.2711 for mainland BC or 250.386.6348 for Vancouver Island. Also look on the websites under “Buyers Tips” or “Consumers Tips” for more information.
• You may also contact one of the various government or non-profit consumer agencies listed on the Business Practices & Consumer Protection Authority’s website at www.bpcpa.ca or phone the Authority at 1.888.564.9963.
• To learn more about BC’s consumer protection laws, read the Business Practices & Consumer Protection Act, available online at www.bpcpa.ca or at your local law library.

[updated July 2007]

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