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New Zealand law explained for everyone

Fair Trading Act 1986

Consumer transactions and auctions - Layby sales

36F: Cancellation of layby sale agreement by consumer

You could also call this:

“You can cancel a layby sale before taking the items home”

You can cancel a layby sale agreement at any time before you take the goods home. You can do this by telling the seller in any way that shows you want to cancel, like talking to them or writing to them.

When you want to cancel, you need to contact the seller using the details they gave you when you made the agreement, or in any other way you both agreed on.

The seller can’t make you pay to cancel unless:

  • You cancel the agreement, or
  • The seller cancels because you broke an important part of the agreement, and
  • The agreement says you have to pay to cancel, and
  • The seller didn’t break the agreement.

If the seller does charge you for cancelling, it can’t be more than what it cost them because of the agreement. This might include things like:

  • How much the goods lost in value since you made the agreement
  • The cost of storing and insuring the goods
  • The cost of managing the agreement, like office costs or wages

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156626.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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36E: Risk in goods, or

“When you buy something in parts, the shop looks after it until you finish paying”

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36G: Cancellation of layby sale agreement by supplier, or

“When a shop can stop your layby agreement”

Part 4A Consumer transactions and auctions
Layby sales

36FCancellation of layby sale agreement by consumer

  1. A consumer may cancel a layby sale agreement—

  2. at any time before the consumer takes possession of the goods to which the agreement relates; and
    1. in any way (including oral or written) that shows the intention of the consumer to cancel or withdraw from the agreement.

      1. For the purposes of subsection (1)(b), the consumer must communicate with the supplier—

      2. by way of the contact details provided in accordance with section 36C(2)(a)(v); or
        1. in any other way agreed to by the consumer and the supplier.

          1. A supplier must not require the consumer to pay a charge for the cancellation of the agreement (a cancellation charge) unless—

          2. the agreement is cancelled—
            1. by the consumer under subsection (1); or
              1. by the supplier, because the consumer has breached a material term of the agreement (see section 36G(a)); and
              2. the agreement provides that a cancellation charge is payable; and
                1. the supplier has not breached the agreement.

                  1. A supplier must not impose a cancellation charge that is more than the supplier’s reasonable costs arising directly from the agreement.

                  2. In subsection (4), reasonable costs arising directly from the agreement includes, for example,—

                  3. the loss in value of the goods between the date of the agreement and the date of the cancellation of the agreement:
                    1. the reasonable costs incurred in storing and insuring the goods while the agreement was in force:
                      1. the reasonable administration costs of the agreement (for example, office expenses, salaries, or wages directly attributable to the agreement).

                        Notes
                        • Section 36F: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).