Changing your mind

Once you've entered into a contract, you're generally stuck with it. You can only back out or change the terms if the person or company you're dealing with agrees.

Say you've just been shopping and, on impulse, bought yourself a new jacket. But, because you later decide you don't like the colour, or can't really afford it, you can't just take it back. You've entered a binding contract with the shop. Despite what many people think, you don't have seven days to change your mind and return it.

There are a few exceptions. Here are some of the common ones:

• If you borrowed money on a credit contract, you can cancel the contract any time during the first three days. If the contract was a hire purchase agreement for your new DVD player, and you've already taken possession of it, you can get out of the credit agreement but you've got to keep the DVD - and pay cash for it. If you haven't taken possession, you can cancel outright and pay nothing.
• If you're buying a new dress or anything else on layby, you can cancel the layby arrangement at any time. Usually, you'll get most of your money back. Laybys are covered by the Layby Sales Act.
• Under the Minors' Contracts Act, minors can sometimes avoid their responsibilities under a contract. A contract that is not "fair and reasonable" cannot be enforced against someone younger than 18. Minors who are 18 or 19 years old are normally bound by contracts, unless the consideration was inadequate or the terms of the contract were harsh or oppressive.

Mistakes

Ever found an absolute bargain, only to be told when you get to the shop counter the price was a mistake?

Unfortunately for you, the shop can't be forced to sell at the display price. The price tag is an invitation for you and the shop to talk; it isn't an "offer" under contract law. The shop can raise the price or introduce other new conditions at any time until you reach agreement.

But if the shop discovers the mistake after you've made the purchase, it generally can't then ask you to pay more. By then, you have a contract.

The only exception is if you knew the price was a mistake, but took advantage of it anyway. Under the Contractual Mistakes Act, a court could require you to pay the correct price. For example, you go to buy a jacket for $300, but the shop assistant only types $30 into the eftpos machine. You notice this but continue with the purchase, hoping to get away with it. If the shop contacts you later once they realise the mistake you have to pay them the difference.

Shops can't deliberately display the wrong price in order to entice customers in. That would breach the Fair Trading Act, which bans misleading advertising.