No C 22/6 Official Journal of the European Communities 29.1. 77 
working life of the power stations before and after 
modernization. 
Article 4 
Applications for grants must be accompanied by a 
plan showing minimum annual quantities of coal, 
expressed in tee (tonnes of coal equivalent), to be 
burned during the first seven years of full operation 
of the installation. 
Article S 
In considering applications for grants, the 
Commission is to be guided by the coal-burn plans 
submitted to the effect that the higher the proposed 
coal-burn in relation to the amount of the grant, the 
higher the priority of the project. However, priority 
is to be given to projects in regard to which the 
electricity undertaking is prepared to commit itself to 
use principally Community coal. 
Article 6 
The Commission will adopt implementing provisions 
for this Regulation and in particular for the 
submission of applications for grants under Article 3 
of this Regulation and will draw up a standard form 
of contract to conclude with the undertakings to 
benefit from grants. 
This standard form of contract shall include the 
following conditions relating to the payment of 
grants: 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Articles 100 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, — grants will be payable in 10 equal instalments, 
three of these prior to the installation coming into 
service and the remaining seven annually 
thereafter subject to fulfilment of the coal-burn 
plan in Article 4, 
— the first three instalments may be repayable to the 
Commission in the event of the installation not 
commencing operation within a period to be 
specified in the contract, 
— the seven annual instalments may be reduced or 
withheld in the event of the coal-burn plan not 
being fulfilled. 
Article 7 
All relevant technical and financial information 
requested by the Commission relating to all stages of 
a project for which grants are requested under this 
Regulation shall be made available to the 
Commission throughout the period of the payment of 
grants. The Commission shall have the right to verify 
this information by inspection. 
Article 8 
The Commission will make a report at regular 
intervals on the execution of this Regulation and will 
communicate it to the Council and to the European 
Parliament. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas it is a common form of commercial practice 
in the Member States for the negotiation of a 
contract or a unilateral engagement between a trader 
and a consumer to be initiated away from the 
business premises of the trader; whereas such 
contracts and engagements are already the subject of 
legislation in the Member States; Proposal for a Council Directive to protect the consumer in respect of contracts which 
have been negotiated away from business premises 
(Submitted by the Commission to the Council on 17 January 1977) 
29.1. 77 Official Journal of the 
Whereas any disparity between such legislation may 
directly affect the functioning of the common 
market; whereas it is therefore necessary to 
approximate laws in this field; 
Whereas the Preliminary Programme of the European 
Economic Community for a consumer protection and 
information policy (*) provides inter alia under 
paragraphs 24 and 25 that appropriate measures be 
taken to protect consumers against unfair commercial 
practices in respect of doorstep selling; 
Whereas the special features of contracts negotiated 
away from the business premises of the trader are 
that as a rule it is the trader who initiates the 
negotiations for contracts for which the consumer is 
unprepared or does not expect; whereas the consumer 
is often unable to compare the quality and price of the 
offer with other offers; whereas this surprise element 
generally exists not only in contracts made at the 
doorstep, but also in any other form of contract 
initiated by the trader away from business premises; 
Whereas consumer protection will be augmented by 
providing that contracts which are initiated by the 
trader away from his business premises must be in 
written form and contain certain essential provisions; 
Whereas the consumer should be given a right of 
cancellation within at least seven days of the signing 
of the contract in order to enable him to study the 
obligations arising thereunder; 
Whereas appropriate measures should be taken to 
ensure that the consumer is informed of this period 
of reflection and that this period should not be 
shortened by any provision in the contract; 
Whereas goods and services provided during this 
period of reflection should be at the risk of the trader 
subject to the return of the goods where possible; 
Whereas to protect consumers against abuses relating 
to certain goods or services Member States may 
prohibit the negotiating of contracts away from 
business premises for these goods or services, »ean Communities No C 22/7 
HAS ADOPTED THIS DIRECTIVE: 
Article 1 
1. This Directive shall apply to contracts between 
a consumer and a trader, and unilateral engagements 
by a consumer towards a trader, negotiations for 
which have been initiated away from business 
premises. 
Such contracts and engagements are hereinafter 
referred to as 'doorstep contracts'. 
2. For the purpose of this Directive: 
— 'consumer' means a natural person who in 
transactions covered by this Directive acts 
otherwise than in a commercial or professional 
capacity, 
— 'trader' means a natural or legal person who in 
the exercise of a commercial or professional 
activity concludes contracts with consumers, 
— 'business premises' mean the permanent place of 
business at which a trader exercises his 
commercial or professional activity as well as 
stalls at fairs and markets. 
Article 2 
This Directive shall not apply to: 
(a) contracts which have been negotiated exclusively 
at the initiative of the consumer; 
— for the purposes of this paragraph the 
ordering of catalogues, patterns, samples and 
similar items, a request by the consumer for a 
visit or demonstration, and participation in 
an event organized by the trader shall not be 
considered as initiating negotiations; 
(b) contracts which have been negotiated solely in 
writing; 
(c) contracts which are concluded before a court, 
notary or other person who is under duty to 
inform both contracting parties of their rights 
and obligations; 
(d) contracts relating to immovable property or any 
rights thereto; 
(») OJ No C 92, 25. 4. 1975. (e) contracts under which the price payable by the 
consumer does not exceed 25 European units of 
account; 
No C 22/8 Official Journal of the European Communities 29.1. 77 
European unit of account means the unit of 
account as defined by Commission Decision 
3289/75/ECSC of 18 December 1975 (1). 
The conversion value in national currency to be 
adopted shall, as from 31 December of each year, 
be that of the last day of the preceding month of 
October for which European unit of account 
conversion values are available in all the 
Community currencies. 
The Council shall, on a proposal from the 
Commission, examine every three years and, if 
necessary, revise the amount specified in 
European units of account in this paragraph, 
having regard to economic and monetary 
movement in the Community. 
Article 2 bis 
This Directive does not preclude the adoption at 
Community level of specific provisions on certain 
types of contract which might contain obligations in 
respect of contracts negotiated away from business 
premises and which would derogate from the 
obligations contained in this Directive, particularly 
those covering: 
— consumer credit, 
— home-study courses, 
— moveable assets, 
— insurance contracts. 
Article 3 
1. The Member States shall take the necessary 
measures to ensure that doorstep contracts are made 
in writing. 
2. The doorstep contract shall in particular 
contain the following information: 
— name and address of the contracting parties, 
— a description of the goods or service forming the 
subject matter of the contract, 
— a time limit of delivery of the goods or supply of 
the service, 
— the price, 
— the terms of payment, 
(*) OJ No L 327, 19. 12. 1975, p. 4. — notice of the right of cancellation enjoyed by the 
consumer, which shall be set apart from the main 
text of the contract and must contain the name 
and address of the party against whom the right 
of cancellation may be exercised. 
Article 4 
1. The consumer must sign the doorstep contract 
in his own hand. 
2. A copy of the doorstep contract must be given 
to the consumer on the signing thereof or forwarded 
to him immediately thereafter. 
Article 5 
A doorstep contract shall be void if the provisions of 
Articles 3 and 4 have not been complied with. 
Article 6 
1. The consumer shall have a right of cancellation 
by giving the trader notice within a period of not less 
than seven days after signature by the consumer of 
the doorstep contract in accordance with the pro­
cedure laid down by national law. It shall be 
sufficient if the notice is dispatched before the end of 
the period. 
2. The Member States may, however, fix a later 
date from which the period shall begin. 
3. The serving of notice to the trader shall have 
the effect of releasing the consumer from any 
contractual obligation. 
4. The consumer may not renounce his right of 
cancellation. 
Article 6 bis 
Where the services concern a direct insurance other 
than a life assurance, and where immediate cover of 
risks is agreed, the provisions of Article 6 shall not 
apply if the consumer so requests. 
Article 7 
The Member States shall take the necessary measures 
to ensure that a separate cancellation form 
corresponding to the model annexed to this Directive 
is handed to the consumer when he signs the 
29.1. 77 Official Journal of the European Communities No C 22/9 
doorstep contract in order to facilitate the exercise of 
his right of cancellation. 
Article 8 
1. If the consumer exercises his right of 
cancellation, any payments made must be reimbursed 
and any goods received must be returned at the 
expense and risk of the trader. 
2. The consumer shall not be required to pay for 
normal use of the goods during the period mentioned 
in Article 6. 
3. The Member States may make provision for 
supplementary requirements relating to the 
consequences of the cancellation. 
Article 9 
Except for any payment of a deposit required under 
national law, the trader shall be forbidden to require 
the consumer before expiration of the period 
mentioned in Article 6: 
(a) to make full or partial payment of the contract 
price or to provide any other kind of payment or 
any surety; or 
(b) to sign a bill of exchange, cheque or other kind 
of negotiable instrument or, for the trader, to 
take such a document. 
Article 10 
In case of dispute: 
(a) as to whether a doorstep contract has been 
negotiated exclusively at the initiative of the 
consumer; or 
(b) whether a doorstep contract has been negotiated 
solely in writing, Article 11 
Contractual provisions which: 
(a) require the consumer to pay some form of 
compensation if he exercises his right of 
cancellation; or 
(b) provide that a court other than that normally 
competent to hear such a case shall have 
jurisdiction, 
shall be void. 
Article 12 
1. The consumer shall not be hindered in or 
stopped from exercising his right of cancellation 
because of a false statement as to the date of 
conclusion of the doorstep contract. 
2. To this end, the Member States shall provide 
that: 
(a) the doorstep contract be dated by the consumer 
in his own hand; or 
(b) the doorstep contract be registered with an 
appropriate body. 
Article 13 
Member States may prohibit the initiation of 
negotiations by a trader for doorstep contracts 
generally or in relation to certain goods or services 
only or may subject them to prior authorization. 
Article 14 
1. The Member States shall bring into force the 
measures necessary to comply with this Directive 
within 18 months of its notification and shall 
forthwith inform the Commission hereof. 
2. The Member States shall ensure that the texts of 
the main provisions of national law which they adopt 
in the field covered by this Directive are com­
municated to the Commission. 
Article 15 
the burden of proof shall lie with the trader. This Directive is addressed to the Member States. 
No C 22/10 Official Journal of the European Communities 29.1. 77 
ANNEX 
Model of the 'cancellation form' 
I hereby declare that I am cancelling the contract 
for 
(description of the goods or service) 
amounting to 
(price) 
signed 
(date) 
Name 
Address 
Date