What is a contract?

A contract exists when someone offers a product or service to another person who accepts and gives something of value in exchange.

How are contracts made?

We all make contracts every day of our lives. For example, when you buy a drink from a vending machine you have made a contract. The owner of the vending machine provides you a drink in exchange for a handful of coins. That is a contract. Another example is when you are hired to shovel your neighbour's snow in the winter in exchange for being paid $5.

Contracts do not have to be in writing to be legal, though they often are. Contracts can be made verbally or in writing, or they can be implied through the way the people involved are behaving.

Am I responsible for contracts I make?

Generally, you can't back out of contracts that benefit you in some way. For example, you must follow through with contracts for food, clothing, lodging, work and schooling. In the case of a contract to purchase goods, you may be entitled to refuse to complete your obligations if the goods are not received or are if they are not satisfactory.

In the case of a contract for services, such as a contract for work, under certain circumstances you may be entitled to refuse to complete your obligations. For example, if the working conditions are dangerous or otherwise unsatisfactory, or if you are paying someone to provide a service and that service is not performed. Many contracts for services are subject to provincial labour laws.

You are generally responsible for any goods or services that you have already used.

Are there any contracts I'm not responsible for?

You are not responsible for contracts that force you to pay a penalty or high amount of interest if the type of penalty or interest rate is prohibited by law.

You are not responsible for contracts if you never accepted someone's offer to provide a product or service to you.

Consumer Protection

What happens if I've bought goods that turn out to be stolen?

If goods are stolen and then sold to you, the true owner may take the goods back, even if you didn't know that the goods were stolen. You can sue the seller for the money that you paid for the goods.

You could be charged criminally with possession of goods obtained by crime. You will only be convicted if the judge believes that you knew or that you reasonably ought to have known that the goods were stolen when you bought them.

What is a warranty?

A warranty is a term in a contract that, as an example, can be a promise by the seller to the buyer of goods that the goods will be in a certain condition. If they are not in the promised condition, the buyer can take the goods back to the seller and, depending on the wording of the warranty, exchange them, have them repaired or obtain a refund.

Many manufacturers also offer added warranties, for example, to repair the goods for a stated period of time at no charge.

Do all goods have a warranty?

When buying goods that fall within the provisions of The Sale of Goods Act, there is an implied warranty: that the seller has the right to sell the goods, that the goods are new and unused unless stated otherwise and that the goods are fit for the purpose for which they are being purchased.

Every statement made by the seller to you in person or through an advertisement is an express warranty and must be true, or the buyer may return the goods. The buyer may also demand a refund on the basis that there has been a misrepresentation.

When you buy used goods from a commercial retailer there is an implied warranty under the Consumer Protection Act. The implied warranty is that the goods are of the quality you would expect from goods as old adn used as they are described.

When you buy a used good from a private seller, the Consumer Protection Act does not apply, but you still get some warranty under the Sale of Goods Act, depending on what the seller tells you about the goods.

What if I think I have been treated unfairly by a seller?

Your first step should be to write a letter to the person in charge of the department or to the company's complaint department. You can get the address by phoning the company and asking. This letter should clearly and politely explain your problem and should not be more than 1 page. Do not make any threats and be sure to include your name, return address, and the current date at the top of the letter. Also, make a copy of the letter to keep for yourself.

If you do not get a reply within 3 weeks, you should contact the Consumers' Bureau. The Consumers' Bureau will investigate complaints made by consumers and can proivide information about consumer rights and responsibilities..

You can also contact the Better Business Bureau, which promotes fair business practices in the retail market of goods and services. If you think that you have been treated unfairly the Better Business Bureau will provide information to you on businesses and will help to resolve complaints.

You can also contact the Consumers' Association of Canada, which has information on consumer rights and how to complain effectively.

You may wish to consult a lawyer.

Collection Agencies

What is a collection agency?

A collection agency can take things that you own as long as you have agreed when you bought those things that they could be repossessed if you did not complete your obligation to pay for them.

If a court allows, a collection agency or the Sheriff's Department can seize your money or property, possibly through garnishing your wages from a job. Generally in these circumstances, the person you owe money to will have obtained a court judgement against you, and you will have been given notice that you have been sued.

A collection agency will be able to sell the things they take from you to help pay your debt. They may not keep more than what you owe plus the costs of seizing and selling your property.

What can't a collection agency do to get money from me?

A collection agency can't do anything that will cost you any more money than what you already owe plus the costs allowed by the courts and in law for suing, seizing property and selling it.

A collection agency can't trick you with any false documents.

Only 1 collection agency can try to collect the debt at a time.

A collection agency cannot try to collect money from you unless they first tell you to whom the money is owed, how much is owed, and who they are.

When can a collection agency try to collect money from me?

A collection agency can only try to collect money between the hours of 7:00 a.m. and 9:00 p.m. and not at all on Sundays or holidays.

What if I think a collection agency is harassing me?

A collection agency is not allowed to harass you, your family or your friends. The Consumers' Bureau will listen to your complaint if you feel that you are being harassed by a collection agency.