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QLD Can We Walk Away from Contract Under Australian Consumer Law?

Discussion in 'Australian Consumer Law Forum' started by Matty W, 23 June 2016.

  1. Matty W

    Matty W Member

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    We have been back and forth with a customer since early May. He chopped and changed his mind several times over the course of the quoting period.

    During this time, we've made a massive error in costings. We didn't add the additional equipment/materials needed and are now going to lose approx. $10,000.00 if we complete the job. We have not received a signed copy of our contract back as requested. The customer has paid a deposit, we want to refund his deposit and walk away, no hard feelings.

    Where do we stand under Australian Consumer Law?
     
  2. Rod

    Rod Well-Known Member

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    You have two grounds for walking away from the contract:
    • Mistake made about an important matter
    • The other party has not signed the contract. Though this is weakened as you have implied acceptance by receipt of his deposit.
    In addition to returning his deposit you may need to reimburse the customer for any losses he may have incurred through your mistake. Not sure how far through the job you are and size of the contract. These factors can also influence the result (eg: $10K on a $1M contract may not be considered important).

    You also have the option of continuing if the customer accepts the increase in price.
     
  3. Matty W

    Matty W Member

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    Thanks Rod, we've received similar advice this morning as well.
     

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