Check whether your agreements are covered by the legal definition of a lay-by contract and whether your company is meeting its obligations to customers. There is no set amount or percentage for termination fees, but there should be no more than your “reasonable fees” related to the lay-by agreement (for example). B storage and administration fees that apply to the lay-by agreement). What is “reasonable” depends on the circumstances and you should be prepared to justify that your costs are reasonable. The company stated that it had “reformulated the terms of its current agreements to make them clearer to customers.” You can only charge a termination fee to the customer if they terminate the contract. A lay-by agreement allows you to buy a product and pay for it in two or more installments before taking it home. It is important that you understand what the written agreement entails and how you or the company can terminate it. When entering into a lay-by contract, the customer is entitled to a copy of the contract and must ensure that he understands the terms and conditions. The agreement must be transparent, which means that it must be presented in clear, readable and clear language. A lay-by agreement can`t be transparent though, e.g. B, terms and conditions are hidden in small print or small print, formulated in legal jargon or in complex or technical language. When you start a lay-by contract, you need to make sure the customer knows the terms and conditions. When the customer announces a lay-by contract, there are rules that companies must follow when offering lay-by agreements to their customers.

Lay-by chords must be written and transparent (in plain language, readable and clearly presented). The contract must state all terms and conditions, including all cancellation fees (also known as termination fees). Cancellation fees must be clearly and legible in the lay-by agreement. A lay-by is an agreement between you and a customer in which you can terminate the lay-by agreement at any time before receiving the products. Lay-by agreements that are standard contracts may be covered by abusive contractual clause provisions in Part 2-3 of the Australian Consumer Law. A customer may revoke the Lay-by contract at any time prior to the delivery of the goods. If the customer terminates the Lay-by contract, you must refund to the customer all the sums paid, net of the termination fees clearly defined in the Lay-by contract. You may have obligations under the laws on lay-by agreements, even if you do not call the agreement “lay-by.” Apart from the termination tax, you are not entitled to damages or other corrective measures to terminate the Lay-by contract. Sara Court, a member of the ECJ responsible for the ACCC, said: “The Court of Justice`s findings send a clear message to distributors that they must comply with all obligations under Australian consumer law, including abusive clause laws that protect consumers from abusive clauses in the standard form of consumer contracts. For many Australian consumers, buying goods through a lay-by agreement is a convenient way to shop, especially in the run-up to Christmas. Companies that use lay-by as a sales method must ensure that they meet their acl obligations to their customers.

The sales practice guide includes unsolicited deliveries, unsolicited consumer agreements, pyramid schemes, multiple prices, reference agreements, referral sales, harassment and coercion. A contract is considered lay-by if the consumer: If you terminate the Lay-by contract or if the customer terminates the Lay-by contract because of one of your faults (for example. B, the merchandise was damaged during storage), you cannot charge the termination fee to the customer. If the price of the item z.B. changes, if the item is now on sale, the consumer must always pay the price indicated in the De Lay-by agreement, unless the store agrees to sell the product at the new price.