Buyer beware: the devil is in the detail, says Peter Couslon

Licensees are a sociable lot - that's their trade. They also do most of their business by word of mouth, over the bar. So I suppose it isn't surprising that they enter into verbal agreements almost as second nature, even for major purchases.

Recent stories in this newspaper confirm what I have known for a long time - that unscrupulous companies think the licensed trade is an easy target for scams and cons of all kinds, and also for clever verbal contracts that seem difficult to wriggle out of.

I am, however, simply amazed that anyone can consider making an agreement for a switch of power-supply over the phone, or for allowing any member of staff to enter into discussions over supplies or goods, without going through a proper formal process. It is a recipe for misunderstanding and probably an expensive mistake as well.

The wonderful phrase that often precedes connection to a company: "This conversation may be recorded for training purposes" is itself something of a scam - it is basically to ensure that the company knows exactly when a verbal agreement has been made, and what has been said. Of course it is used to train sales teams, so that they know where they went wrong. But more often than not, when I have challenged an account given to me by a financial institution, it has checked back on the recording to see exactly what was said.

But how many of you actually record incoming calls to the pub? It is just as important to know what your staff say to the scores of sales-people that ring up. The licensed trade loses hundreds of thousands of pounds in unwanted sales, unsolicited magazine advertisements, supply agreements and the like, which, after a few moments' thought, would put safely in the bin where they belong.

I still set great store by that old cliché: if an offer sounds too good to be true, it probably is. While I am sure that self-made entrepreneurs in the pub trade will point to spontaneous deals that have made them a fortune, rather more have had their fingers burned several times and never seem to learn. The only time a contract means anything is when you try to get out of it!

My own counsel of perfection, which even I find difficult to follow, is never to agree to any deal on the spot. I want to be able to read the small print, even with a magnifying glass, which is usually needed. Tucked away there is the get-out clause or limitation which will make a crucial difference to the apparent deal that has been struck.

But very important in this context is the instruction to your own staff never to agree themselves to a deal on the phone or over the bar without checking with you first and making that clear to the sales person. That is the key element - if you ensure that they cannot commit to a sale, the contract is not made and cannot be enforced.

It is only if you allow them to act as your agent in the deal that the supplier can enforce payment, as if you signed for it yourself.

Also, use the services of your local trading standards department if you think you have been ripped off in some way. Although I may knock local councils from time to time, trading standards are valuable in protecting both consumers and tradespeople - and they know the law. Their advice can be invaluable.