Cooling-off Rights
Numerous legislatures have over the last half century and more introduced so-called “cooling-off” provisions requiring mandatory cooling-off periods in some consumer contracts. Where such cooling-off periods apply the effect is that when a consumer signs an agreement with a supplier, the commencement of the contract is suspended for a period during which the consumer may simply notify the supplier that he wishes to terminate the contract. This allows the consumer a period within which he or she may reflect on and reconsider whether he or she wishes to continue with the agreement.
Section 13 of the Credit Agreements Act (75 of 1980) provided that where a credit agreement was signed by a consumer at a place other than the business premises of the supplier, the consumer was entitled to terminate the agreement during a period of five days from the date of the agreement. This provision has been superseded by the provisions of section 13 of the National Credit Act (34 of 2005). The consumer is also afforded a cooling-off right in relation to direct marketing transactions by section 16 of the Consumer Protection Act (68 of 2008). In respect of contracts for the purchase of land (fixed property) on instalments consumers also have a right of termination for a period of five days after the date of signature of the agreement.
Section 13 of the Credit Agreements Act (75 of 1980) provided that where a credit agreement was signed by a consumer at a place other than the business premises of the supplier, the consumer was entitled to terminate the agreement during a period of five days from the date of the agreement. This provision has been superseded by the provisions of section 13 of the National Credit Act (34 of 2005). The consumer is also afforded a cooling-off right in relation to direct marketing transactions by section 16 of the Consumer Protection Act (68 of 2008). In respect of contracts for the purchase of land (fixed property) on instalments consumers also have a right of termination for a period of five days after the date of signature of the agreement.