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Basic RightsWhat’s a contract?
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A contract is a legally binding agreement made between two or more people or groups. If one person doesn’t hold up their end of the contract, the other can ask a court to enforce the contract or get compensation.
Contract Basics
A contract is a legal agreement between two or more people (or companies). You make a contract when you agree to do something (like pay money) in exchange for something else (like a phone or a job).
Anytime you buy something, you enter into a contract. For a contract to exist, you have to offer to buy something, the seller has to accept your offer, and something of value has to be exchanged. Whenever you buy a product or a service, you are a consumer.
For example, suppose you decide that you want to buy a new case for your cell phone. The cost of the case is $15.00. When you go to the cash register, you pay the store $15. The clerk accepts your money and gives you the case. This transaction represents a contractual relationship between you (the consumer) and the store (the seller). The receipt is proof of the contract.
Contracts do not have to be in writing… but it helps
Some contracts are in writing and are signed. The courts are able to enforce contracts if someone (including a company) doesn’t live up to their side of the agreement. Having a written contract makes it easier to show what everyone agreed to and can prevent misunderstandings. However, even contracts that are not in writing can be enforced. If you have any evidence about what you agreed to like text messages or emails, those can be used to show what you agreed to.
It is difficult to enforce a contract against someone under 19 years old
Most of the time, if you are 19 or older in BC, you can make any contract. If you’re under 19, it’s a bit different. You can still make contracts, but generally they cannot actually be enforced against you. There are exceptions! Contracts for things you really need—like food, rent, or work—are usually able to be enforced against you. Once you reach 19, if you agree to be bound by or start performing your end of the bargain, then it becomes an enforceable contract.
Once you agree to a contract, it can be hard to change your mind
You have to sign binding contracts for many of the goods and services you buy such as a cell phone, gym membership, and cable service. You should know what you are getting into before you sign any contract.
Always read carefully and make sure you understand what you're agreeing to before you sign or say yes. If you’re not sure, talk to a trusted adult or get legal help.
Top Tips on Contracts
Read the Entire Contract
- Understand Before You Sign: Take the time to read the entire document, not just the parts you think are important. Understand what you’re agreeing to. The offer should be clear and include important details like price and what is being exchanged.
- Ask Questions: If something is unclear, ask for an explanation. Remember that a signed contract is a legal document, so you will have to live with what you agreed to.
Know Your Rights
- Minimum Standards: Be aware of the consumer protection laws and other standards in your area.
- Illegal Clauses: Remember that any part of a contract that goes below these legal standards is not enforceable.
Negotiate if Necessary
- Discuss Terms: Don’t be afraid to negotiate terms that you’re not comfortable with. This could be about pay, hours, or responsibilities.
- Get It in Writing: Ensure any changes or agreements made during negotiations are written into the contract.
Keep a Copy
- Document Storage: Always keep a copy of your signed contract. This way, you have a reference if there are any disputes or misunderstandings later.
- Keep the receipts: If you don’t have a signed agreement, be sure to keep evidence of your agreement such as text messages or emails. Follow up verbal conversations in writing to confirm the details about what you’ve agreed to. This can avoid confusion or opportunities for misunderstanding later.
Understand the Consequences
- Breaking the Contract: Know what happens if you or the other person wants to break the contract. Are there penalties? What are your rights?
- Changes to the Contract: Understand that changes to your contract must be agreed upon.
Seek Advice
- Talk to Someone: If you’re unsure about something, talk to a trusted adult before signing.
- Contact Authorities: If you believe your contract is unfair or illegal, contact the relevant authority like the Employment Standards Branch, Consumer Protection BC, the Residential Tenancy Branch for help.
Red Flags to Watch For
- Unrealistic Promises: Be cautious of promises that seem too good to be true. They often are.
- Pressure to Sign Quickly: If a salesperson pressures you to sign quickly without giving you time to read the contract, that’s a red flag.
Hot Tip
You can make changes in standard contracts. Make sure any verbal agreements or claims made by the salesperson are written into the contract. Take out or cross out elements you do not want to agree with, and write your initials next to the change. The salesperson should also initial any changes before you sign.
Can I get out of a contract?
Your contract might include what to do if you want to get out of a contract so step one is always read the contract. But there are also certain types of contracts that have special rules that allow you to change your mind under certain circumstances. If not, you have to carry out your end of the bargain.
Dig Deeper
Need to cancel a contract? from Consumer Protection BC and Canceling or Breaking a Contract from the People’s Law School
Dig Deeper
Get help
Consumer Protection BC Assists with some consumer problems and contracts. Includes online complaint form. Call 1-888-564-9963
Employment contracts
When you get a new job, you might or might not sign an official employment agreement, but either way, you have a contract. For more on employment contracts see (internal link).