Background Notes
You won't find the law of contract written down in any Act of Parliament. It's really a set of rules that has developed over the centuries.

Everyone enters into several contracts every day without even realising it. Each time you catch a bus or buy a magazine or a packet of sweets or visit the cinema you are making a contract. It means that both you and the other person involved have important rights. As a consumer you're entitled to receive the goods or services you asked for and you rightly expect them to be in a reasonable condition and safe to use whilst the supplier has the right to expect payment of the amount promised at the time you agreed upon.

What is a contract?
Many people mistakenly believe that you can only have a legally binding contract if you have all the details written down and have signed the piece of paper. This isn't true.

When you step onto the train you're making a contract (provided you paid for your ticket), but you don't ask the driver to sign a form agreeing to take you where you want to go. Nor do you insist that your hairdresser draws up an agreement before touching your head.

A contract is simply a deal between two people where each agrees to do something for the other. Often it involves paying money in exchange for goods or services - just as you buy a ticket from a train company in exchange for carrying you on one of their trains or you hand money to a newsagent in exchange for a magazine.

Both you and the other person are getting some benefit from the arrangement and each of you has responsibilities to the other.

When is a contract made?
Usually at the time that the deal is struck. For example, you see a CD that you want in a music shop window but because it is out of stock you ask the shop to order a copy for you. The shop agrees - and that becomes a contract. You haven't signed anything and you may not have handed any money over but you've agreed that you will once your record arrives. And that's enough to make your contract legally binding.

The exact moment that a contract is made can be very important because if there are any special terms or conditions attached to it (such as "Yes, we'll order the CD but you'll have to pay postage or delivery charges") then you must be told about them at or before the time the contract is made. Otherwise they don't form part of your contract and you can't be forced into accepting them.

What does a contract involve?
Three main things:-

Offer                         as in the case of the CD, where you offer to buy it if the shop will order it for you.

Acceptance          the shop accepts your offer and agrees to order it.

Consideration    this basically means the payment or promise of payment of the agreed price when the CD arrives

There is NO contract, until an offer has been made and this has then been accepted. Both parties must be clear about what they're agreeing to.

Example: Take that CD again as an example. Suppose you had said "I want to buy the latest Oasis CD that you've got in your window" and the shop had said "We've just sold the last one we had on special promotional offer. We can get you another copy but it'll be the full price".

Here the seller isn't accepting your offer, they are making what the law calls a counter-offer and asking you whether you still want to go ahead knowing that the price will increase. At this point you're free to back out of the deal by rejecting his counter-offer. But if you accept then you're agreeing to pay the higher price.

Look at the different civil and criminal laws that can exist us to protect us when we go shopping and consider the rights and responsibilities these place on both the trader and the consumer.

Why is a contract so important?
Once you have made it and agreed the terms of your deal, you have a legal obligation or responsibility to go through with the contract. Changing your mind can actually cost you money because you would be in breach of contract. (the legal term for breaking your agreement).

If you break the contract, the other party can claim compensation. Even if you're a minor (under eighteen years old) you still run the risk of being sued for breach of contract.

It is one good reason why it pays to be careful before you commit yourself to anything.

If, on the other hand, it is the seller who breaks the agreement, then you'd be entitled to compensation for any losses which you suffered. Example - if you pay a deposit for a CD and the shop is unable to get you a copy, you can reclaim the deposit you paid. And if you'd had to make several journeys to and from the shop - perhaps they'd asked you to call back later - then you might be entitled to your fares.

Link to Lifesmart - (This link is currently being created..!)

Background Notes
As previously stated, everytime we go shopping we enter into a contract. We may agree some of the terms of that contract with the trader, however, there will be other terms that are implied into our contract by:

Sale of Goods Act 1979 (as amended)
This is a civil law which say that every time a trader sells you goods:

• They must be of "satisfactory quality"
  This basically means that anything you buy from a shop shouldn't be broken or badly damaged and it should work properly.
  Example - A jumper shouldn't have the arms sewn in back to front, a pair of tights shouldn't have the feet pointing in different directions, a hot water bottle shouldn't leak and drench your feet with scalding water.
  
  Sale goods - these may not be in perfect condition, so it is important to look to see if they are marked as "shop soiled" or "seconds". The seller is not responsible for any defects which he told you about or which you should have noticed before you bought them.
  
  Second hand goods - these are covered by the Sale of Goods Act, however, the price you pay for the goods is taken into consideration and the wear and tear on the item when you buy it is also a relevant factor.
  
  Durability - There are no hard and fast rules laid down in the Act about how long anything should last. A lot of your rights will depend on how you use the goods. You will not be entitled to help from a trader if you have damaged the items yourself.
  
  
• They must match the description the trader gives them
  Example - A pair of trousers described on the label as "100% pure cotton" should be just that. If you buy a milk chocolate Easter egg which is described as 'solid chocolate', it shouldn't be hollow.
  
  NB - If a trader gives a false description it would also be covered by the Trade Descriptions Act 1968 (discussed later) and could be reported to your local Trading Standards Department.
  
  
• They must be "fit for their purpose".
  Example - Wellington boots shouldn't let in water (although fashion boots might). If you ask for a food mixer that beats, whisks and kneads dough then the one the seller gives you should do all those things.
  
  But be careful of making assumptions. If you want something to do a particular job then say so. Don't just pick up the first thing that comes to hand and hope for the best. If you do then you've only yourself to blame if it doesn't measure up to your requirements.
  

Unsatisfactory Goods
If the seller fails to meet any one of these three conditions (satisfactory quality, description or fitness for purpose) then he or she is probably in "breach of contract".

Despite anything a retailer may tell you, you have no legal claim against the manufacturer under the Sale of Goods Act. The law says that it's the retailer's responsibility.

If the fault is serious and you find it almost immediately, or soon after purchase, then you are entitled to claim your money back.

If it's less serious and can be fixed by a simple repair or adjustment then the trader may offer to do that. Sometimes the fault may affect the look of an item rather than its performance - for example, a scratch or a dent. Here, you'd probably be entitled to a reduction in price or some of your money back.

Occasionally you may suffer other financial losses as a result of buying faulty goods. For example, a T-shirt may be described as "machine washable" but when you take it out of the machine you find the dye has run and stained other clothes, or you have to pay out of pocket expenses such as travel or postage. All of these costs can form part of your claim against the seller.

Credit Notes
Often traders will offer you a credit note instead of a refund. A credit note is simply a piece of paper that the trader writes on promising to give you goods in exchange for its value.

You don't have to accept a credit note if you have bought faulty or misdescribed goods. So don't be fobbed off with one. If you think you're entitled to a refund you should say so and not take anything less than the law allows you.

Other points to remember

• If you keep faulty goods for a long time without telling the shop, you may lose your right to a refund. So take them back immediately.
  
  
• The Act doesn't say that you have to produce your receipt - but you will need to be able to prove that you bought the goods and a receipt is usually the simplest way. So it can save a lot of hassle if you try to keep receipts safe.
  
  
• You are never legally entitled to have a replacement item, but if you're offered one and are happy to accept it then fair enough.
  
  
• You're not entitled to anything at all if you've simply changed your mind or decided that you didn't like something.
  
  
• Just because a garment doesn't fit you doesn't mean that it isn't fit for its purpose. So try before you buy - or ask the seller beforehand whether he'll agree to give you your money back if it's not suitable.
  
  
• If the goods that you have purchased have been misdescribed, then you should also contact your local Trading Standards Service
  
  The Trade Descriptions Act 1968 sets out to protect consumers from traders who either deliberately or accidentally mislead their customers. It is a criminal offence if a trader:-
  
  Falsely describes the goods he or she is selling. Take for example, a second-hand car described as having had "one careful lady owner. Low mileage". The Act says that if you're given details like this then they must be true.
  
  Similarly, if a set of saucepans is described on the box as being "Aluminium - non-stick coating" then that's exactly what they should be;
  
  If a watch is advertised on television as being waterproof then it shouldn't merely be water resistant;
  
  If the label on a fruit pie shows a cross-section overflowing with whole pieces of juicy fruit then the filling shouldn't be a fruit-flavoured purée;

Worksheets
The Welsh Consumer Council has developed a consumer education site containing a wealth of information, activities and quizzes on a wide range of consumer issues.
Click on one of the following:
Shopping worksheet 1
Shopping worksheet 2

Extension work
The Welsh Consumer Council's Consumer Education website also contains a range of information on other subjects that can be considered when looking at shopping such as advertising and product safety.

Background Notes
This is another civil law which is designed to help consumers who make contract for services and was made to extend the protection given by the Sale of Goods Act 1979.

The Supply of Goods and Services Act 1982

This Act covers not only services but also the goods that may be used as part of that service:

Examples:-

• You hire a bicycle for the day. You've gone about half a mile when the chain falls off and the seat collapses.
• You take your watch in to be serviced and repaired. It needs a new winder but the repairer puts in an old one from somebody else's watch and it doesn't last the week.
• You've been collecting sales coupons and finally exchange them for a "gift" from the catalogue. When it arrives its broken.

The Supply of Goods and Services Act says that if goods are being supplied to you as a part of a service then those goods must be as described, of satisfactory quality and fit for the purpose. In other words they have to meet the same standards as those laid down in the Sale of the Goods Act - as if they'd been sold to you over the counter.

The second part of the Act deals with the basic obligations of anyone who provides a service, such as dry cleaning, hairstyling, plumbing, transport, estate agency. It says that the supplier must carry out the work with reasonable care and skill and that is must be done within a reasonable time and for a reasonable price.

Verbal Contracts
Many service contracts are made verbally, such as "My watch has stopped. Can you repair it?" This can sometimes cause problems because you may end up with a bigger bill than you'd expected.

You should always tell the trader to contact you if it seems likely that the job will be more expensive than anticipated - then you have the choice of going ahead or leaving things stand.

The Trade Descriptions Act 1968
As stated earlier, this Act sets out to protect consumers from traders who either deliberately or accidentally mislead their customers.

The Act also makes it illegal for traders to knowingly mislead you about the services they are providing. For example..-

• If your Hotel is described as being 50 yards from the beach, it should be;
• If the brochure says that every room has a sea-view, they all should;
• If a dry cleaner charges you for water-proofing a rain-coat he should do it.

It is illegal for traders to describe falsely what they sell in writing, in advertisements (including those on radio or television) or by word of mouth.

DOORSTEP SALES
Doorstep selling has increased over years. Many people find themselves answering a knock on the door and then being offered goods - maybe household cleaning items or more usually services - fitting of security systems, building work, gardening work etc.

Unfortunately some of these are unscrupulous traders who are simply trying to rip off consumers.

Wigan Metropolitan Borough Council (WMBC) Trading standards website which gives you some tips on what to watch for if a salesperson calls on you, what to ask for and what your rights are if you feel that you ended up buying something from them under pressure.

The Smart Shopper's Guide was written by Essex County Council Trading Standards (and has been adapted for the Internet by Oxfordshire County Council Trading Standards Service). It contains a section on Services which contains teaching notes, roleplays and worksheets.

Teaching Notes and Activities

Further Information
The Department of Trade and Industry's Consumer Gateway website provides further information on Holiday problems and Home Improvements

Background Information
In spite of the popular image of the British as a nation of complainers, few of us honestly enjoy making a fuss even when we have good cause to do so.

Complaining isn't a hobby. It should be done only when necessary and, like everything else, there is a right way and a wrong way to go about it. As a general rule:-

• Only complain when you really need to.
  
• Make sure you complain to the right person.
  
• Don't lose your temper, swear or get personal.
  
• Know your rights. A basic knowledge of what you're entitled to can be very helpful for both you and the person you're complaining to.
  
• Be patient. Sometimes it can take weeks to sort out a problem, particularly if you're dealing with a big organisation or your complaint is rather complicated.

How to make a complaint
Whether you decide to complain by telephone, letter or in person, always begin by asking yourself:-

• Is my complaint justified?
  
• Have I got my facts straight?
  
• What are my legal rights?
  
• Am I complaining to the right person?
  
• What do I want them to do about my complaint?
  

Step-by-step Complaining

Your first step:-

• Always contact the person/shop who sold you the goods/services.
• Ask to see the Manager. Don't make a scene in the shop - be calm, clear and reasonable.
• Explain what the problem is and what you would like the shop to do about it, ask the Manager whether he can help you.
• If you don't find the Manager helpful and you don't feel that you're making any progress don't lose your temper. Tell him that you aren't satisfied and that you intend to take the matter further. Make sure you pick up any receipt/your goods before leaving the shop.

Your Next Step:

• Find out whether the firm has a Head Office.
  
• If they do, write a letter to their Customer Service Manager. (Letter writing is dealt with in detail below) Explain that you have already been back to your local branch but that the Manager was not able to help you. Give the date of your visit(s).

OR

• If there's no Head Office, write to the owner of the firm. Again, tell them that you have already tried complaining personally but that you had no success.
• Always keep copies of any letters that you write.
• Again, don't threaten and don't be rude. Remember - Calm, Clear and Reasonable.

Your Next Step:

• If your letter doesn't solve your problem you can try to find out whether the shop or firm belongs to a Trade Association. If so you can write to them and ask for their help. Some Associations have special Codes of Practice for dealing with customer complaints. You can find out whether the trader is a member of an Association by asking at the shop, or looking for any signs or notices about trade associations, or checking any letters or documents.

OR

• If you're complaining about faulty goods and there is no Trade Association or Code of Practice, you can try getting in touch with the manufacturer as they might be prepared to help you. It's certainly worth a try.

OR

Your Next Step

• If all else fails you should think about suing the trader in the County Court. (Court action is dealt with in detail below)

Writing letters of Complaint
Try to make sure that you:

• Keep copies of any letters that you write. You might need to refer to them later.
• Send your letter by recorded delivery. It costs a little more but it proves that you sent the letter and the firm received it.
• Send copies of any receipts, invoices or other documents. Don't send the originals.
• If you're writing to a Company's Head Office, address your letter to the Customer Services Manager.

Your Letter should:

• Give clear, simple details of exactly what it is that you're complaining about. Don't waffle and don't make personal remarks about the Company and/or their products or staff. It might make you feel better but it won't help your case.

If you're complaining about faulty goods you should give:-

• A description of them and make and model number, if appropriate.
  
• The place and date that you bought them and how much you paid.
  
• What you think is wrong with them.
  
• What you've done so far to put matters right (e.g. if you've been back to the shop, then say when and who you spoke to).
  
• What action you want taken. If you want your money back, say so.
  
• Allow the Company about two weeks to reply before considering you next course of action.

Taking your case to the County Court

The County Court is where you would need to go if you needed to resolve a civil dispute and if the value of your claim is no more than £5,000, this will be dealt with via a 'small claims' case.

This procedure is written for a straightforward contractual dispute, eg- where someone has purchased some faulty goods and the trader is not prepared to give any money back.

1) The first thing you must do is find out who you need to take Court action against (sue) - that will be the person or company who you bought the goods from. In certain circumstances, this may also include a credit provider.

2) When you have done this, you will need to complete a Claim Form and a Particulars of Claim where you give your version of what has happened to-date. This is why it is always wise to write a final "Letter of Claim" to the person you intend to sue to give them one final chance of settlement out of court. It is important to explain in that letter that you intend to take Court action if they do not meet your reasonable wishes within a stated deadline (ie, 10-14 days).

All the forms needed to progress a claim as well as helpful information is available via the Court Service Website.

3) You need to send your completed forms and copies of any supporting documents to your local County Court and pay a fee which is roughly 20% of the value of the claim)

4) The Court will then serve your claim form on the person that you are suing (the defendant). The defendant has to:

• Accept your claim and agree to pay
  
• Defend your claim with reasons
  
• Defend your claim and/or make a counterclaim for money against you

If the defendant fails to respond to your claim in the time allowed, you can complete a form (which will have been sent to you) requesting that the judgment be made automatically in your favour.

5) If the defendant defends the case, then the court will ask you to complete an Allocation Questionnaire. This asks for some more information relating to the claim and allows the court to manage its resources and to give any further instructions that you need to follow.

At this stage, you can ask for the Judge to make a decision on the case by referring only to written documents but this has to be agreed by the defendant as well.

The Court will then advise when the hearing will be held and note: it is referred to as a "hearing" not a "trial". The case will be decided upon usually in a small room and whilst it is open to the public, they are unlikely to be in attendance. It will be comparatively informal - there will be no barristers present, probably not even a solicitor, the judge will wear no fancy gown and there will be no jury.

The District Judge will tend only to ask both parties to present their case, ask relevant questions and then give his decision, known as his Judgement.

Additional Points

• Obtaining a judgement in your favour is the easy part, you may then find it expensive and difficult to actually enforce that judgement (ie, bailiffs).
  
• When a Small Claims Judgement is obtained, appeals are very restricted.
• You can check to see if a defendant already has outstanding court judgments before you make your claim.
• Your local Trading Standards Office or Citizens Advice Bureau are good starting points for further information as they will probably also be able to tell you whether you have a case to pursue or not.
  
• Further information on Small Claims can be obtained from the Court Service Website.

Role Plays
The Smart Shopper's Guide was written by Essex County Council Trading Standards (and has been adapted for the Internet by Oxfordshire County Council Trading Standards Service). It contains a range of teaching activities, including ideas for role plays that students can undertake in order to learn how to complain effectively.

The resource contains information on:
Consumer Rights and Consumer Wrongs

Worksheets and Quizzes
The Welsh Consumer Council have developed a consumer education site containing a wealth of information, activities and quizzes on a wide range of consumer issues.
Click on one of the following:
Complaining Worksheet 1
Complaining Worksheet 2

Further Information
The Department of Trade and Industry's Consumer Gateway website provides further information on How to complain.