Tips for making a contract

When you buy goods or services from a company, you conclude a contract. For example, when you pay for a product at the checkout in a shop or accept an offer given by a company, this is a contract.

A contract is binding on both parties, the vendor and the buyer. They must both comply with the terms and conditions of the contract, and neither party can usually modify the contract one-sidedly without a particular reason.

A sales contract is in most cases binding even if it has not been made in writing. If you have a verbal contract and there is a dispute, it may be difficult to verify what the contract contained. This is why it is a good idea to always have a written contract, especially on larger purchases.

Tips for making a contract

• First take your time to examine the product or service you are about to purchase.
• Familiarise yourself with the key contract terms at the latest when you conclude the contract.
• Check the duration of the contract. It may be a one-off, fixed-term or ongoing contract.
• Find out if you can terminate the contract if necessary, and on what conditions.
• Find out about the conditions under which the company can change the contract terms.
• Remember that the contract usually is binding on you and the vendor, even if it had been made verbally.
• It is a good idea to have a written contract on any large purchases. Read the terms and conditions of the contract carefully before you sign it. If necessary, you can take a day or two to think about the contract.

What do contract terms contain?

You must be given an opportunity to read the key terms and conditions that affect your purchase decision already when the product is being marketed, or at the latest when you are concluding a contract. This means that only referring to the terms and conditions of the contract when making a sale is not enough.

The main contents of the contract must be clearly set out in the terms and conditions. The terms and conditions should include:

• the product or service that the contract concerns
• price
• duration of the contract: one-time, fixed-term or ongoing contract
• delivery time and terms of payment
• penalties for breach of contract
• conditions on which the contract terms can be changed
• termination and cancellation of the contract

What if the contract terms are unclear?

All information that is important for the consumer must be set out clearly in the contract. In a dispute over the terms and conditions of the contract, any standard terms that are unclear and open to interpretation will be interpreted to the advantage of the consumer.