Types of consumer retail contracts you need to know
The retail sector in South Africa like many other sectors is regulated by laid down laws of the country.
These laws provide the framework under which business dealings must be conducted through the entire chain of business from suppliers to consumers.
For consumers, navigating through the numerous readily available retail contracts which are offered can be a tricky undertaking.
To find the best retail deals and contracts, Guzzle should be your first consideration as a consumer.
What constitutes a consumer retail contract?
Retail contracts are offered by retailers to consumers as part of the retail sales process. It is a common thing in South Africa for consumers to sign up for mobile, entertainment and appliance contracts.
In a nutshell, a retail consumer contract is an agreement between retailers and consumers within the framework of the law.
If a consumer agrees to individual terms with a retailer, these are called express terms. If the terms are standard for all consumers, these are called standard terms.
The two broad categories of retail contracts are verbal and written. A written contract has written down terms and conditions while a silent one doesn’t have. A perfect example of a silent contract is a consumer picking goods in a retail store and proceeds to buy them through self-service, this is a silent contract.
Guzzle facilitates users shopping needs through a product email reminder option. This means shoppers can take advantage of the latest deals as soon as they become available.
The available retail contracts are, therefore:
Standard form contracts
This type of contract doesn’t offer any room for negotiation and is offered on a take or leave basis.
The terms are set and normally outlined at the back of tickets, quotes, invoices, etc. Standard contracts are very common for things like car rentals, phones, entertainment subscriptions, gym membership, etc.
Negotiated contracts
Negotiated contracts provide lots of leverage for negotiation for terms before signing off. It is for this reason that this type of contract applies to non-consumable agreements such as finance agreements, home loans, car sales, etc.
Verbal contracts
A verbal contract works on the principle of trust between the seller and the buyer. In short, it’s an agreement by word of mouth. It’s binding the moment an offer is accepted.
Electronic contracts
E-commerce is a fast-growing niche of the retail sector. Due to the electronic nature of this business, agreements are by email and online forms.
How can consumers safeguard themselves?
- First things first – find out the length of the contract, payment terms and any incentives you qualify for.
- Don’t be in a hurry to sign up, give yourself time to think through the offer. In some instances, this can assist you by making the retailer offer better terms to coerce you to sign up.
- What you are told by word of mouth should be replicated in the written contract.
- When a salesperson pitches with a product, double-check if what’s proposed is included in the written contract.
- Check the implications and penalties of failing to abide by the terms of the contract.
- You need to know so that just in case unforeseen circumstances arise, you can easily cancel the contract without bearing harsh consequences.
- Above all this, you need to know that your rights as a consumer are protected under the consumer protection act 68 of 2008.
- You can also stay informed by checking an information portal called Retail Talk on Guzzle which provides informative content pieces touching on a wide range of retail subjects and developments.
- As a retail consumer, it’s important to familiarise yourself with your rights and obligations as you shop. The above info provides sufficient guidelines in this regard.
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