Myth Buster

Scenario

Jamie is very fond of cooking and so when a salesman came to his home claiming to have the best knife-set on the market for just RM500, he just could not refuse and signed the contract of sale immediately.

After the salesman left, Jamie had the chance to think it over and realized he does not want the new knife-set and decides to take a good look at the terms and conditions of the contract he had just signed to see whether there is a chance for him to determine the contract without any negative consequences.

Unfortunately, the contract does not include any clause giving him the right to reconsider his purchase. Is it true that Jamie is legally bound to the contract of sale?

Mythbusted.

According to section 23 (1) (b) Direct Sales Act 1933, a contract in respect of a door-to-door sale for the supply of goods having such value as may be prescribed (The Direct Sales Regulations 1993 has prescribed the value of goods and services to be RM300 or more), shall contain immediately above the place provided for the signature of the purchaser the statement “THIS CONTRACT IS SUBJECT TO A COOLING-OFF PERIOD OF TEN WORKING DAYS” printed in upper case in type not smaller than 18 point Times.

Any attempt to contract out this provision shall be void and any person responsible for it is committing an offence under section 37 (1) (a) where a contract to which this Act applies shall not contain any provision purporting to exclude, restrict, or modify any right conferred on a purchaser by this Act.

In this case the provision is void and the vendor and any person authorized by him to enter into such a contract are each guilty of an offence.

The aim of this section is to protect consumers or purchasers.

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