Types of consumer contract
Definitions of consumer contract types to allow traders to understand their obligations including distance, off premises, sales, service and digital contracts.
Consumer contract rules vary depending on the type of contract. In today's competitive marketplaces, businesses may be involved in several types of transactions e.g., a trader selling goods from a high street shop and from a website. Understanding the definitions of the contracts you make will help you to follow the correct rules.
Consumer contracts are divided into three main types:
- Distance contracts are agreements made between a trader and consumer when they're not physically present. These contracts are negotiated and agreed upon using distance communication, such as online, over the phone, or by post. This refers to organised distance selling methods, like websites, rather than one-off instances, such as a shop taking a single order by phone. Read more on online selling rules.
- Off-premises contracts are generally agreements made between a trader and consumer when they are together at a place that is not the trader's usual place of business. Examples include doorstep sales and excursions organised by the trader. There are four types of off-premises contracts to be aware of:
- A contract made away from your usual place of business – for example at the consumer's home or workplace.
- A consumer makes an offer in a place that is not your usual place of business, and you agree to it later – for example, where a consumer signs an order form during a visit to their home and the trader agrees on the contract later.
- A contract is agreed upon either on your business premises or through distance communication following a meeting with a consumer in a place that is not your usual place of business. For example, a salesperson meets a consumer in the high street then the consumer is then taken to the local office to sign the contract. An example of using distance communication would be if the salesperson in the high street meets the consumer and immediately enters into a contract with them using a tablet computer.
- A contract made with the consumer during an excursion organised by the trader with the aim of selling or promoting goods or services to the consumer.
- On-premises contracts are agreements made at your business premises, including permanent locations and temporary ones like market stalls. If a contract does not fall under the definition of a distance or off-premises contract it will be an on-premises contract.
If you are unsure which of these contract types applies to your business, contact the Trading Standards Service for more advice on Consumerline at Tel: 0300 123 6262.
Contracts are divided into three main types:
- Sales contracts: For goods, or goods and services combined (e.g., window supply and installation).
- Service contracts: For services only (e.g., personal training or legal advice).
- Digital content contracts: For data, such as downloads, apps, games, or streaming.