Act in haste, repent at leisure

It is a truth universally recognised that people never read the small print on contracts. How often do you happily sign a supply agreement with the soothing words "You don't need to worry about any of that" ringing in your ears from the ever-so-friendly salesman? As often as I do, I am sure.

All this is triggered by two recent stories - the warnings issued by the Office of Fair Trading to gullible purchasers and the licensee who didn't realise that he would be put on a punitive new energy tariff unless he gave 90 days' notice.

As I have often written before, a busy licensee tends to do deals in a hurry, even for financially important matters. Rather like marriage, if you get hooked too quickly, you'll have plenty of time to repent later!

It seems to me that supply companies take advantage of one the main failings of many people - they do not want to look silly by asking a simple question. So the very important issue of what happens when the bonus period ends, and when you have to give that all-important written notice is not addressed at the start. All the hapless landlord sees is a chance to get something at a better price - for now.

I know it is easy for me to give advice from afar, but it is crazy to sign up for anything on the spot: there is no way that the deal is only available to you personally, unless it is dodgy. Take 24 hours to think of those simple questions you want to ask, and then write them down. That way, you will not forget them when you are speaking to the sales person the second time.

Secondly, do not be embarrassed with basic questions. As those who have been to my licensing talks will know, often the simplest question is the most difficult to answer. It is best to find out if the emperor has any clothes right at the start.

I know that the technically minded among you will point out that even if you get an answer it is not legally binding. Oral warranties, as they are called, are specifically excluded from most contracts, so assurances from the salesman are fairly meaningless. But a deliberate misstatement to induce you to sign up is a different matter. A completely wrong answer to a question about the contract itself would be such an example.

So the moral is: put them on the spot. Get to know exactly what you are agreeing to. And mark the calendar.