Consumer’s Right to Terminate for Convenience in a Continuing Consumer Relationship
Date Issued
2016
Date
2016
Author(s)
Chiang, Wen-Hsuan
Abstract
Continuing consumption has been popular in recent years, and in certain situations, consumers are inclined to terminate the contracts before they expire, which causes a lot of consumer disputes. This thesis explores consumer’s right to terminate for convenience in a consumer relationship. This thesis firstly identifies the various types of consumer relationships, including traditional contracts for continuing supply of services and goods, as well as contracts for services and goods provided in installments. In addition, it discusses the elements and features of the continuing consumer relationships. Secondly, this thesis studies on the current situation of the right of termination in Taiwan, sorts out our laws and regulations concerning consumer’s right to terminate, and explores the principles about termination developed by theory and practice. In Taiwan, a consumer cannot terminate a fixed-term contract or an installment contract without the commercial supplier’s default, except for the type of contracts regulated under ‘’mandatory or prohibitory provisions of standard contracts’’ mandated by the government authorities. Thirdly, this thesis does a comparative law study on the right of termination in different jurisdictions. The German law, Japanese law, English law, Chinese law and South African law provide consumers a special right to terminate a continuing consumer relationship so as to offer a higher level of protection. Therefore, this thesis explores the legal basis of consumer’s right to terminate, and generalizes the features of a continuing consumer relationship. Considering the information asymmetry as well as the inequality of bargaining power between consumers and commercial suppliers, this thesis offers some recommendation to tackle this issue. First of all, the risks arising from the continuing consumer relationship should be borne by commercial suppliers, who have the ability to take and avoid the risks. In addition, to pursue the justice of contract, this thesis suggests that the ‘’pacta sunt servanda principle’’ should be interpreted with flexibility. As such, we should allow consumers to terminate the contracts for convenience. However, to balance the interests of consumers and commercial suppliers, we should allow commercial suppliers to demand damages for the losses incurred due to early termination. This thesis bases its analysis on the existing laws and regulations from which we may develop a right for consumers to unconditionally terminate the continuing contracts. Lastly, this thesis also provides comments on the current Consumer Protection Act, recommending an amendment to grand consumers a right to terminate for convenience in a continuing consumer relationship.
Subjects
Terminate for Convenience
Continuing Consumer Relationship
pacta sunt servanda
Right of Regret
Mandatory or Prohibitory Provisions of Standard Contracts
Consumer Protection
Type
thesis
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