Cancellation rights
Where you enter into a distance or off premises contract with a consumer, they will have a right to cancel. Under this right, the consumer may cancel the contract for any reason and may do so at any time during the “cancellation period” (being the period ending 14 days after the day on which the contract was entered into). 1The Consumer Contracts Information, Cancellation and Additional Charges Regulations 2013, regulation 30. This period is extended where the consumer is not informed of their right to cancel – see regulation 31.
Where the consumer exercises their right to cancel, the contract is cancelled and treated as if it was never entered into. Both parties are relieved from their obligations under the contract2The Consumer Contracts Information, Cancellation and Additional Charges Regulations 2013, regulation 33. and the consumer is entitled to a refund of any sums paid in advance for services yet to be performed.3The Consumer Contracts Information, Cancellation and Additional Charges Regulations 2013, regulation 34. If you have started to provide the services during the cancellation period, you will not be entitled to charge the consumer in the event they exercise the right to cancel, except where:
- the consumer has expressly requested that you provide some (or all) of the services during the cancellation period; and
- in the case of an off-premises contract, the consumer has made such a request in a durable medium4The Consumer Contracts Information, Cancellation and Additional Charges Regulations 2013, regulation 36. (a durable medium could be an email or a written request made in hard copy).
In such cases you may charge the consumer a reasonable amount for the services provided, typically calculated by reference to what has been supplied as a proportion of the full service to be provided under the contract. If you have provided all the services under the contract during the cancellation period, the conditions in paragraph 40 above have been met and the consumer has acknowledged in advance that they would lose their right to cancel in such circumstances, the consumer will lose their right to cancel.5The Consumer Contracts Information, Cancellation and Additional Charges Regulations 2013, regulation 36.
Example. Your client has a hearing in two days and asks you to prepare points of dispute on a bill ahead of the hearing. If your client confirms in writing (for example, by email) that they want you to start work straight away, they will lose their right to cancel if you complete that work.
- 1The Consumer Contracts Information, Cancellation and Additional Charges Regulations 2013, regulation 30. This period is extended where the consumer is not informed of their right to cancel – see regulation 31.
- 2The Consumer Contracts Information, Cancellation and Additional Charges Regulations 2013, regulation 33.
- 3The Consumer Contracts Information, Cancellation and Additional Charges Regulations 2013, regulation 34.
- 4The Consumer Contracts Information, Cancellation and Additional Charges Regulations 2013, regulation 36.
- 5The Consumer Contracts Information, Cancellation and Additional Charges Regulations 2013, regulation 36.