A contract is created even when the purchase is simple enough not to warrant a written contract.
When a written contract is prepared, it usually includes contract terms. They can be named in several ways: terms of sale, terms of delivery, terms of trade, terms of insurance etc.
Orally agreed terms are also valid, but they may be difficult to prove in case of disputes. Because of this, all important aspects of the sale should be agreed to in writing. Standard terms of contract as well as case-specific terms regarding e.g. the time of delivery are part of the contract. Contracts may be long-term (e.g. electricity supply contracts), fixed-term (e.g. magazine subscriptions) or one-time contracts (e.g. purchase of a car).
When a consumer and a business enter into a contract, it is binding on both parties. Both parties must comply with their obligations as stated in the terms of the contract. Therefore you should carefully read and understand the terms of a contract before signing.
The binding nature of the contract also means that neither party can change the contract without special justification.
You should carefully read and familiarise yourself with contract terms before signing. The essential content of the contract must be clearly stated in the terms, such as:
If the consumer fails to read the contract and terms before signing, unpleasant surprises may follow. In such cases, the consumer may not plead ignorance. Contract terms are not binding if the consumer has not had a genuine chance of familiarising himself with them. As such, it is not enough to simply refer to contract terms in conjunction with a sale.
Consumers must be provided clear and unambiguous information on important terms affecting the purchase decision. This information must already be provided in the marketing of the product or service. One example of such information is price.
Entering into contracts and the content of contracts in Finland is fairly free - this is known as freedom of contract. Businesses are free to specify, for example, what they sell, what they don't sell, how they sell and, in most cases, who they sell to. Terms may not, however, be in breach of law. A business may, for instance, specify that they only sell products in pairs - such as an afternoon paper and a TV magazine for one total price. Consumers may not demand that they be sold only one of the two products sold together.
A business may also specify that they sell a discount-priced product only in exchange for a discount coupon clipped from a newspaper or magazine. In this case, the offer is directed at the readership of the newspaper or magazine in question. At the same time, such narrowing down of target customers may not be in breach of legislation, for example with regards to regulations against discrimination.
Despite the principle of freedom of contract the rights and obligations of the parties must be balanced. The terms may not, for example, be constructed in such a way as to have the consumer bear greater risks of new technology not working properly and the purchased service therefore not being available. As the business drafts the terms of contract, it is responsible for ensuring their compliance with legislation. The terms may not, for example, be in breach of the Consumer Protection Act. This is because the Consumer Protection Act contains several so-called mandatory provisions. This means that legislative requirements take precedence over terms of contract agreed between the business and the consumer. Legislation also stipulates that contract terms may not be unfair. The meaning of "fair" or "unfair" depends on the type of contract.
As the business drafts the terms of contract and sells products or services under its own terms, it must take the position of consumers into consideration in drafting contract terms.
Contracts must clearly disclose all matters relevant to the consumer. In disputes unclear standard terms of contract are interpreted in favour of the consumer.
Typos or other errors in contracts may be corrected if the counterparty can be expected to have understood that the term in question had an error.
The Consumer Ombudsman has negotiated general standard terms of contract with organisations from several industries. These are used by the member businesses of said organisation. However, it should be noted that such terms might not be adopted industry-wide, as there may be businesses who are not members of the umbrella organisation. Standard terms of contract are usually available at the relevant industry organisations. Certain industries such as the construction industry have an extensive set of standard terms.
Some businesses, for example telephone operators, may require advance payment from consumers when entering into contracts. This is allowed if there are factual grounds for assuming that the consumer is under risk of insolvency. The amount of advance payment has restrictions specified in the Communications Market Act.
Negative commitment is constituted by a business sending a product to a consumer without an order and then demanding that the consumer either pays for it or returns it. Negative commitment has also been used in various services. For example, a service that was initially free has been made chargeable and the consumer has had to notify the provider of his unwillingness to pay for it.
Negative contractual commitment is prohibited under the consumer Protection Act. The consumer does not need to pay for products he has not ordered. Collection agencies may not accept an assignment of debt collection for unpaid invoices without verifying that the validity of the debt.
In practice it is recommended that consumers notify the business in writing that they have not ordered anything from them and therefore have no obligation to pay, safekeep or return products delivered without an order. The consumer should keep a copy of such notifications for their own records.
In distance selling several businesses have agreements with the postal service for free-of-charge customer returns in case the consumer wants to return products that were delivered without an order. The consumer does not, however, have any obligation to do so.