Cancellation of time share agreement (201602-0006059) [2016] ZACGSO 9 (22 March 2016)

Cancellation of time share agreement (201602-0006059) [2016] ZACGSO 9 (22 March 2016)

The consumer did not cancel the agreement within the contractual or statutory cooling off period. However, both the Consumer Protection Act and the National Credit Act apply concurrently to the transaction, and the provision that extends greater protection to the consumer prevails. The supplier may impose a reasonable cancellation penalty, but it must be based on actual costs and not negate the consumer's right to cancel. The supplier is required to mitigate its loss by finding an alternative consumer. The recommended resolution is that the supplier accept the cancellation and reimburse the deposit paid, less any expenses reasonably incurred in connection with the sale of the goods, with...

Citation
[2016] ZACGSO 9
Parties
Applicant: Miss M.; Respondent: Supplier (unnamed)
Court
Consumer Goods and Services Ombud
Jurisdiction
South Africa
Judgment Date
22 March 2016
Case Number
201602-0006059
Procedural Posture
Consumer Complaint / Recommendation
Outcome
Recommended that the supplier accept cancellation and reimburse the deposit paid, less reasonable expenses incurred.
Judges
N Melville
Legal Topics
Consumer Protection Act, National Credit Act, Cancellation of Agreement, Cooling Off Period, Reasonable Cancellation Penalty
Commercial and Corporate Civil Procedure Consumer Protection Act National Credit Act Cancellation of Agreement Cooling Off Period Reasonable Cancellation Penalty

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 6 Authorities cited 4 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Miss M.

Applicant

Supplier (unnamed)

Respondent

Procedural Posture

Consumer Complaint / Recommendation

Legal Issues

  1. 1 Whether the consumer is entitled to cancel the timeshare agreement and obtain a refund of the deposit paid.
  2. 2 Whether the cancellation occurred within the contractual or statutory cooling off period.
  3. 3 Whether the supplier may impose a reasonable cancellation penalty under the Consumer Protection Act or National Credit Act.

Ratio Decidendi

The consumer did not cancel the agreement within the contractual or statutory cooling off period. However, both the Consumer Protection Act and the National Credit Act apply concurrently to the transaction, and the provision that extends greater protection to the consumer prevails. The supplier may impose a reasonable cancellation penalty, but it must be based on actual costs and not negate the consumer's right to cancel. The supplier is required to mitigate its loss by finding an alternative consumer. The recommended resolution is that the supplier accept the cancellation and reimburse the deposit paid, less any expenses reasonably incurred in connection with the sale of the goods, with...

Court Disposition

Recommended that the supplier accept cancellation and reimburse the deposit paid, less reasonable expenses incurred.

Orders

  • The supplier is to accept the cancellation of the agreement.
  • The supplier must reimburse the consumer the deposit paid, less any expenses reasonably incurred in connection with the sale of the goods.