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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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We are a distant seller, a family firm with very flexible terms

Resolved Question:

We are a distant seller, a family firm with very flexible terms which you can read here http://www.diamondgeezer.com/orderconfirmation/
Our clients orders can only be processed if they tick each clause, each paragraph to confirm they understand.
On the 16th September we delivered a £3,000 ring that we made from scratch to meet a customer's precise order.
This is a full eternity so made especially for the client to meet precise finger size requirements. It is a stunning piece.
We delivered on time, on cost with our standard thirty day returns period. The contract has been fulfilled.
Today he's tells us in a letter received by post that he is 'cancelling his contract' and wants a 100% refund, I quote
'my wife has never worn the ring, she doesn't like it'. He has not sent back the ring, which I assume he still has.
Where do we stand?
The ring would have to be scrapped at a loss of £1,500 if we are expected to refund on a clients whim.
It drives a hole through our business model and puts a 45 year old business in jeopardy.
I thank you
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

For now please let me know whether the item was custom made, I assume it was?

Alex Watts :

Also, did the customer instruct you to start making it, or did you start once you had the order through?

Customer:

  1. Yes the item was custom made

Customer:

We started on order confirmation, agreed delivery date and payment

Alex Watts :

Ok. When was the ordered placed?

Customer:

The customer was involved in the 12 processes required to make the ring at every step of the way

Customer:

Order date August 22nd

Alex Watts :

When was the order placed?

Alex Watts :

Sorry 22nd August yes

Customer:

yes

Alex Watts :

CONSUMER CONTRACTS (INFORMATION, CANCELLATION AND ADDITIONAL CHARGES) REGULATIONS came into effect on 13th June 2014

Alex Watts :

What this does is allows a customer 14 days cooling off period from placing an online order to cancel

Alex Watts :

When did they cancel?

Alex Watts :

In any event it does not matter.

Customer:

do they never cancelled and he was delighted when he received 'just what he ordered'

Customer:

no they never cancelled and he was delighted when he received 'just what he ordered'

Alex Watts :

Under the regulations bespoke or customised goods are exempt from the cooling off period.

Alex Watts :

Therefore the only choice the customer has is under the Sale of Goods Act.

Alex Watts :

Goods must be fit for purpose, of suitable quality and as described.

Alex Watts :

If your goods are and there is nothing wrong, then the customer can NOT cancel.

Alex Watts :

The customer does not have any cooling off period.

Alex Watts :

The customer can NOT cancel his contract.

Customer:

You should know that before his demand for a refund in spite of the fact that we met the contract precisely and professionally we offered
a remodelling service to meet the new needs now the wife was involved

Alex Watts :

Therefore under the regulations if it is bespoke the contract is exempt and the customer can not cancel

Alex Watts :

If there is nothing wrong with the goods then the customer can not demand a refund

Alex Watts :

Ok - you are not under any obligation to refund

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

the Sale of goods act

Alex Watts :

Sale of Goods Act?

Customer:

can I just upload the letter we received to ensure we have covered everything?

Alex Watts :

Yes of course

Alex Watts :

There is nothing wrong with the ring and therefore complies with Sale of Goods Act

Customer:

Full Size Image

Alex Watts :

Can I clarify anything for you about this today please?

Alex Watts :

Yes

Alex Watts :

The Regulations do NOT apply as this is bespoke.

Customer:

just have a quick look at the letter please

Alex Watts :

Please see:

Alex Watts :

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/310044/bis-13-1368-consumer-contracts-information-cancellation-and-additional-payments-regulations-guidance.pdf

Alex Watts :

it is bespoke and therefore exempt

Alex Watts :

Section 13 states:

Alex Watts :

Items made to a particular, often unique specification are exempt from
cancellation rights on the basis that a trader might otherwise be left with a
product so specific to a particular consumer’s needs that there is no other
market for it once the consumer has cancelled the contract.

Alex Watts :

This applies here

Alex Watts :

It goes on to say

Alex Watts :

In
the above case, the customer should be able to cancel a shirt bearing a team
player name on it. However, a shirt bearing their own name would be likely to
constitute a personalised item to which cancellation rights do not apply.

Alex Watts :

This is only a T-shirt with someone name on it. You have an item of jewellery

Alex Watts :

Does that help?

Customer:

Ok thank you
Now don't like to get in rankles with clients and this kind of third party mediation would be a great extension of our service, should I simply commit to a monthly fee or would you suggest another route?

Alex Watts :

To Justanswer? I can't make that decision for you sadly.

Alex Watts :

But if you want me for future questions you can ask pay as you go and ask for me: Alex W.

Alex Watts :

But ask for Alex W as there are 3 Alex's here quite confusing!

Alex Watts :

Can I clarify anything else for you?

Customer:

Your execution is exactly what we need so that we can get on with proper clients who do seem to love what we do
DANGEROUS URL REMOVED

Thank you Alex and welcome to you new part time position ;-)

Best Regards
Clive B

Ash and 2 other Law Specialists are ready to help you