Victorian Consolidated Legislation

Introduction Agents Act 1997 - SECT 31

Person may withdraw from agreement within 3 days without penalty

31. Person may withdraw from agreement within 3 days without penalty



(1) A person who has entered into an introduction agreement may withdraw from
the agreement at any time before the expiration of 3 clear business days after
she or he receives a copy of the signed agreement.



(2) To do this, the person must within that time-

   (a)  give, or cause to be delivered to, the introduction agent; or

   (b)  leave at the address shown as the agent's address in the agreement; or

   (c)  send by facsimile or by other electronic or mechanical means to the
        agent-

a written notice signed by the person that states that she or he withdraws
from the agreement.

(3) If a person withdraws from an agreement under this section-

   (a)  the introduction agent is entitled to $50 (or any other amount fixed
        by the regulations) or 10% of the total amount that is to be paid to
        her, him or it under the agreement (whichever is the lower amount);
        and

   (b)  the agent must refund all money paid to her, him or it under the
        agreement by (or on behalf of) the person (other than any amount the
        agent is entitled to under paragraph (a)); and

   (c)  the person is not liable to the agent in any way for withdrawing from
        the agreement (regardless of anything to the contrary in the
        agreement).

(4) An introduction agent who must refund money to a person under subsection
(3)(b) must do so within 7 days of receiving the notice of withdrawal.

Penalty: 300 penalty units.

(5) Section 26 overrides subsections (3)(a) and (b).