Problems With Services: Paying a reasonable price if an amount has not been agreed
If a price was not agreed when the contract was made, only a reasonable charge may be made for the service.
When purchasing goods or a service it is rare for a contract not to include details of the price, the absence of a price though may be an indication that the parties are still negotiating and that there is no contract at all. However, it is essential that you check any written terms and conditions, as there may be a clause defining the price, for example, the price at the time of delivery.
If the price has not been agreed for the goods or services, there are statutory consumer rights that state that you must only pay a reasonable price for them. If the price charged has not been agreed and the amount is unreasonably high, you will need to produce evidence to show what a reasonable cost would be by, for example:-
- finding out how much other traders charge
- asking a trade or professional association
- asking an independent expert
- referring to a trade association code of practice for how the price should be worked out
- Statutory consumer rights for services
- When the statutory consumer rights do not apply
- Affirming the contract
- Options for resolving a problem with services when your statutory consumer rights have been breached
- Compensation for goods and services
- Breach of contract
- Non-statutory contractual rights
- Alternative dispute resolution schemes and trade association codes of practice
- Guarantees and extended warranties
- Actions for personal injury or damage to property
Last updated: March 20, 2007