A client asked: “I signed a tuition
agreement that requires me to give a full term’s notice. Am I bound by this?”
I answered:
As you are
a “protected person” - defined in the Consumer Protection Act (CPA) as any individual or any legal entity
with a turnover and an asset value of under R2 million - the notice period is
not binding, and you need only give 20 business’ days’ notice (section 14 and
section 51). However, this is subject to payment of a reasonable
penalty for premature cancellation.
The CPA sets
out the following rights and obligations concerning contracts between suppliers
and consumers:
·
The contract must be in plain
language (section 22);
·
A consumer may rescind a transaction that came
about because of direct marketing, without reason or penalty. The consumer
merely needs to give the supplier written notification of his or her intention
to rescind the agreement, and this notification must be given within 5 business
days of the transaction being
concluded or, within 5 business days of the goods being delivered to the
consumer. (Section 16);
·
The consumer has the right to an
itemised breakdown of his or her financial obligations under the contract and
to receive a copy of the contract free of charge (section 5);
·
Suppliers must not offer to supply, supply or enter
into an agreement to supply goods or services at an unfair, unjust or
unreasonable price or on terms that are unfair, unjust or unreasonable.
Suppliers are also prohibited from marketing any goods or services in an unfair
or unjust manner (section 48);
·
Consumers must be alerted to any
contract term that limits the consumer’s rights. This
notice or provision must be in a conspicuous manner and form that is likely to
attract the attention of an ordinarily alert consumer (typically highlighted at
the top of the contract or initialled by the consumer (section
49); and
·
A contract may not contain clauses
that are misleading or deceptive, subjects the consumer to
fraudulent conduct, directly or indirectly waives or deprives a consumer of a
right entrenched in the CPA, avoids a supplier’s duty in terms of the CPA, sets
aside or overrides the effect of any provision contained in the CPA, authorizes the supplier to do anything that is
unlawful in terms of the CPA or limits or exempts a supplier of goods or services
from liability for any loss attributable to the supplier’s gross negligence section
51).
