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NSW Contract Made Over Phone Legally Binding?

Discussion in 'Commercial Law Forum' started by itsmk, 16 June 2015.

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  1. itsmk

    itsmk Member

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    Is a contract made over the phone legally binding under contract law e.g
    an internet company puts you on a contract but you do not sign anything and you agree over the phone?
     
  2. Ivy

    Ivy Well-Known Member

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    It depends.
    Who initiated the contact? Did the company contact you and ask you to sign up with them?
    What are the terms of the contract?
    Have you been sent terms and conditions? If so, is there a cooling off period?

    Give as many specifics about the conversation as you can including why you want to know if the contract is legally binding.
     
  3. itsmk

    itsmk Member

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    it was. I'm not sure on specific contract, just it was for 2 year contract for internet asking for a friend but they wont supply the recording
     
  4. Ivy

    Ivy Well-Known Member

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    When you say "it was", do you mean that the company initiated the contact with your friend? When companies cold call to solicit customers there are strict consumer laws that apply.

    For example, there is a statutory 10 business day cooling off period. Has it been more than 10 business days since your friend made the agreement with the internet company?

    Also, your friend must have been/ be sent (via post or electronically) a copy of the contract within 5 business days of agreeing over the phone.

    The consumer's rights must be explained by the salesperson at the time the contract is made and no consumer rights can be waived by the agreement.

    Get your friend to have a read of this document from page 10-17 ("Unsolicited Consumer Agreements"): http://www.consumerlaw.gov.au/content/the_acl/downloads/sales_practices_guide_dec_2011.pdf

    Then get them to call the Office of Fair Trading in NSW if the company has breached their obligation/s and your friend is still having difficulties getting out of the agreement. Contact us - NSW Fair Trading
     

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