Refusal to proceed until paid in full is unfair, unresonable and unjust: Supplier not liable to replace or refund (20131024923) [2014] ZACGSO 6 (15 January 2014)

Refusal to proceed until paid in full is unfair, unresonable and unjust: Supplier not liable to replace or refund (20131024923) [2014] ZACGSO 6 (15 January 2014)

The Ombud found that a valid contract was concluded when the agreement was signed. Only a court of law has the authority to declare the contract or any of its terms void or severed. The supplier's requirement for full payment before installation, while potentially harsh, does not automatically render the contract or its terms void under the Consumer Protection Act. The consumer remains bound by the contract and must pay the outstanding balance to obtain installation, unless he elects to cancel the order in accordance with section 17(2) of the Act, subject to a reasonable cancellation fee if the goods are not special order. The supplier is not liable to refund the deposit unless a court...

Citation
[2014] ZACGSO 6
Parties
Applicant: Consumer; Respondent: Supplier
Court
Consumer Goods and Services Ombud
Jurisdiction
South Africa
Judgment Date
15 January 2014
Case Number
20131024923
Procedural Posture
Consumer Complaint / Ombud Determination
Outcome
Complaint dismissed. Consumer bound by contract terms; supplier not liable to refund deposit or install goods before full payment.
Judges
Bonita Hughes
Legal Topics
Unfair Contract Terms, Consumer Protection Act, Deposit Refund, Advance Order Cancellation
Commercial and Corporate Unfair Contract Terms Consumer Protection Act Deposit Refund Advance Order Cancellation

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Parties

Consumer

Applicant

Supplier

Respondent

Procedural Posture

Consumer Complaint / Ombud Determination

Legal Issues

  1. 1 Whether the supplier's refusal to proceed with installation until full payment is made constitutes an unfair, unreasonable or unjust contract term under the Consumer Protection Act.
  2. 2 Whether the consumer is entitled to a refund of the deposit or installation of the goods before paying the outstanding balance.
  3. 3 Whether the contract or any of its terms may be declared void or severed by the Ombud.

Ratio Decidendi

The Ombud found that a valid contract was concluded when the agreement was signed. Only a court of law has the authority to declare the contract or any of its terms void or severed. The supplier's requirement for full payment before installation, while potentially harsh, does not automatically render the contract or its terms void under the Consumer Protection Act. The consumer remains bound by the contract and must pay the outstanding balance to obtain installation, unless he elects to cancel the order in accordance with section 17(2) of the Act, subject to a reasonable cancellation fee if the goods are not special order. The supplier is not liable to refund the deposit unless a court...

Court Disposition

Complaint dismissed. Consumer bound by contract terms; supplier not liable to refund deposit or install goods before full payment.

Orders

  • The consumer should pay the outstanding balance as per the contract, after which the supplier must install the goods.
  • Alternatively, the consumer may cancel the order if the goods are not special order and be repaid the deposit less a reasonable cancellation fee.