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New Zealand law explained for everyone

Consumer Guarantees Act 1993

Supply of services - Provisions relating to cancellation

39: Ancillary power of court or Disputes Tribunal to grant relief

You could also call this:

“Courts and Tribunals can help make things fair when you cancel a service”

When you cancel a contract for services under this Act, you can ask a court or the Disputes Tribunal for help. They can make orders to sort things out fairly if it’s possible to do so.

These orders can do different things. They might give someone ownership of property that was part of the contract. They could tell someone to give property to another person. The court or Tribunal might also tell someone to pay money to someone else, or to do or not do certain things. They can even let a supplier keep some or all of the money you paid.

When the court or Tribunal makes these orders, they can add conditions. But these conditions can’t stop anyone from claiming damages later.

Before making an order, the court or Tribunal thinks about a few things. They look at what you got out of the service, how much work the supplier did, what money was spent, how much of the contract could have been done, and anything else they think is important.

There are some limits to these orders. They can’t take property from someone who wasn’t part of the contract and bought it honestly. Also, if things have changed too much since the contract was cancelled, the court or Tribunal might decide it’s not fair to make an order.

You, the supplier, or anyone else involved can ask for these orders. Even someone who just needs to know if an order will be made can ask.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM312853.

Topics:
Money and consumer rights > Consumer protection
Crime and justice > Courts and legal help
Business > Fair trading
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38: Effects of cancellation, or

“What happens when you cancel a service contract”

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39A: Services subject to collateral credit agreement, or

“Rules for cancelling a service you bought with a special payment plan”

Part 4 Supply of services
Provisions relating to cancellation

39Ancillary power of court or Disputes Tribunal to grant relief

  1. Where a consumer cancels under this Act a contract for the supply of services, a court or the Disputes Tribunal, in any proceedings or on application made for the purpose, may from time to time if it is just and practicable to do so, make an order or orders granting relief under this section.

  2. An order under this section may—

  3. vest in any party to the proceedings the whole or any part of any real or personal property that was the subject of the contract or was the whole or part of the consideration for it:
    1. direct any party to the proceedings to transfer or assign to any other such party or to give him or her the possession of the whole or any part of any real or personal property that was the subject of the contract or was the whole or part of the consideration for it:
      1. without prejudice to any right to recover damages, direct any party to the proceedings to pay to any other such party such sum as the court or Tribunal thinks just:
        1. direct any party to the proceedings to do or refrain from doing in relation to any other party any act or thing as the court or Tribunal thinks just:
          1. permit a supplier to retain the whole or part of any money paid or other consideration provided in respect of the services under the contract.

            1. Any such order, or any provision of it, may be made upon and subject to such terms and conditions as the court or the Tribunal thinks fit, not being in any case a term or condition that would have the effect of preventing a claim for damages by any party.

            2. In considering whether to make an order under this section, and in considering the terms of any order it proposes to make, the court or Tribunal shall have regard to—

            3. any benefit or advantage obtained by the consumer by reason of anything done by the supplier in or for the purpose of supplying the service; and
              1. the value, in the opinion of the court or Tribunal, of any work or services performed by the supplier in or for the purpose of supplying the service; and
                1. any expenditure incurred by the consumer or the supplier in or for the purpose of the performance of the service; and
                  1. the extent to which the supplier or the consumer was or would have been able to perform the contract in whole or in part; and
                    1. such other matters as the court or the Tribunal thinks fit.

                      1. No order shall be made under subsection (2)(a) that would have the effect of depriving a person, not being a party to the contract, of the possession of or any estate or interest in any property acquired by him or her in good faith and for valuable consideration.

                      2. No order shall be made under this section in respect of any property if any party to the contract has so altered his or her position in relation to the property, whether before or after the cancellation of the contract, that, having regard to all relevant circumstances, it would in the opinion of the court or Tribunal be inequitable to any party to make such an order.

                      3. An application for an order under this section may be made by—

                      4. the consumer; or
                        1. the supplier; or
                          1. any person claiming through or under the consumer or the supplier; or
                            1. any other person if it is material for him or her to know whether relief under this section will be granted.

                              Compare
                              • 1979 No 11 s 9
                              Notes
                              • Section 39(1): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).