Cancellation of order for special order tools - financial difficulties: Supplier not obliged to accept cancellation (2013114179) [2014] ZACGSO 3 (4 February 2014)

Cancellation of order for special order tools - financial difficulties: Supplier not obliged to accept cancellation (2013114179) [2014] ZACGSO 3 (4 February 2014)

The Ombud found that the tools ordered by the complainant constituted a special order as defined in the Consumer Protection Act. Section 17 does not entitle a consumer to cancel a contract for special-order goods, and the supplier is not legally obliged to accept cancellation or refund the deposit. The contract between the parties was valid and binding, and the supplier had already incurred costs to import the goods. There is no legal basis for instructing the supplier to cancel the agreement or refund the deposit.

Citation
[2014] ZACGSO 3
Parties
Applicant: Complainant; Respondent: Supplier (E)
Court
Consumer Goods and Services Ombud
Jurisdiction
South Africa
Judgment Date
4 February 2014
Case Number
2013114179
Procedural Posture
Consumer Complaint / Final Determination
Outcome
Complaint dismissed; no recommendation in favour of the complainant.
Judges
Bonita Hughes
Legal Topics
Consumer Protection Act, Special Order Goods, Contract Cancellation, Refund Policy
Commercial and Corporate Consumer Protection Act Special Order Goods Contract Cancellation Refund Policy

Case Brief

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Parties

Complainant

Applicant

Supplier (E)

Respondent

Procedural Posture

Consumer Complaint / Final Determination

Legal Issues

  1. 1 Whether the complainant is entitled to cancel the contract for special order tools due to financial difficulties.
  2. 2 Whether the supplier is obliged to refund the deposit paid by the complainant.
  3. 3 Whether section 17 of the Consumer Protection Act applies to special order goods in this context.

Ratio Decidendi

The Ombud found that the tools ordered by the complainant constituted a special order as defined in the Consumer Protection Act. Section 17 does not entitle a consumer to cancel a contract for special-order goods, and the supplier is not legally obliged to accept cancellation or refund the deposit. The contract between the parties was valid and binding, and the supplier had already incurred costs to import the goods. There is no legal basis for instructing the supplier to cancel the agreement or refund the deposit.

Court Disposition

Complaint dismissed; no recommendation in favour of the complainant.

Orders

  • The supplier is not obliged to refund the deposit of R17,000.00.
  • The contract remains valid and binding between the parties.