How to cancel a contract for services
There are circumstances when a consumer is entitled to cancel a contract for services under the Australian Consumer Law; for example, when a service fails to meet a consumer guarantee.
In these circumstances, the consumer can do so at any time and cancellation takes effect when they tell the supplier they intend to cancel the contract. This can be verbally, in writing or, if this is not possible, by any other reasonable means.
Refunds for cancelled contracts for services
Cancelling a contract for services gives the consumer the right to a refund.
The amount of the refund may depend on whether some or all of the services provided were unsatisfactory, or had been provided at the time the contract was cancelled.
When a consumer is entitled to cancel a contract for services that includes products, they are also rejecting the products. This means they are entitled to a refund of any money or other type of payment they made for the products.
To get a refund, the consumer must return the products to the supplier. If this involves significant cost to the consumer, the supplier may have to collect them at their own expense.
When a consumer is not entitled to a remedy
A consumer is not entitled to a remedy when a supplier does not meet one of the consumer guarantees due to something:
- someone else said or did (excluding the supplier’s agent or employee), or
- beyond human control that happened after the goods or services were supplied.
This exception does not apply when suppliers have not provided the service with due care and skill.