Sch 2 s 83Effect of termination

83 Effect of termination

(1) If an unsolicited consumer agreement is terminated in accordance with section 82:

(a) the agreement is taken to have been rescinded by mutual consent; and

(b) any related contract or instrument is void.

(2) A related contract or instrument, in relation to an unsolicited consumer agreement, is:

(a) any contract of guarantee or indemnity that is related to the agreement; or

(b) any instrument related to the agreement that creates a mortgage or charge in favour of the supplier under the contract or the dealer in relation to the contract (or a person nominated by the supplier or dealer); or

(c) any contract or instrument (other than an instrument of a kind referred to in paragraph (b)) that is collateral or related to the agreement;

but does not include a tied continuing credit contract (within the meaning of section 127(2) of Schedule 1 to the National Consumer Credit Protection Act 2009), or a tied loan contract (within the meaning of section 127(3) of that Schedule).

(3) The termination of an unsolicited consumer agreement has effect for the purposes of section 82 and this section even if:

(a) the supplier under the agreement has not received the notice of termination; or

(b) the goods or services supplied under the agreement have been wholly or partly consumed or used.