Plain language law

New Zealand law explained for everyone

Consumer Guarantees Act 1993

Supply of services - Provisions relating to cancellation

37: Rules applying to cancellation

You could also call this:

“How to properly cancel a service contract”

When you want to cancel a contract for a service, there are some rules you need to follow. The cancellation doesn’t happen right away. It only takes effect when you tell the supplier you want to cancel. If you can’t talk to the supplier directly, you need to show your intention to cancel in a way that makes sense for the situation.

You can cancel by telling the supplier with words or by doing something that shows you want to cancel. You don’t have to use special words to cancel, as long as you make it clear that you want to stop the service.

If you can easily contact the supplier, you might need to cancel in writing if that’s what your contract says. This means you should check your contract to see if there are any specific rules about how to cancel.

Remember, these rules are there to make sure both you and the supplier understand when and how a service is being cancelled.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM312851.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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“When a service you get has a really big problem”

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38: Effects of cancellation, or

“What happens when you cancel a service contract”

Part 4 Supply of services
Provisions relating to cancellation

37Rules applying to cancellation

  1. The cancellation by a consumer of a contract for the supply of a service shall not take effect—

  2. before the time at which the cancellation is made known to the supplier; or
    1. where it is not reasonably practicable to communicate with the supplier, before the time at which the consumer indicates, by means which are reasonable in the circumstances, his or her intention to cancel the contract.

      1. Subject to subsection (3), the cancellation may be made known by words, or by conduct indicating an intention to cancel, or both, and it shall not be necessary to use any particular form of words, so long as the intention to cancel is made known.

      2. Where it is reasonably practicable to communicate with the supplier, subsection (2) shall take effect subject to any provision in the contract for the supply of a service requiring notice of cancellation in writing.

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