SBC | Buy Phone Outright vs Contract Canada: Legal Comparison 2021
post-template-default,single,single-post,postid-209144,single-format-standard,ajax_fade,page_not_loaded,,qode_grid_1200,transparent_content,qode-theme-ver-13.9,qode-theme-bridge,disabled_footer_top,disabled_footer_bottom,wpb-js-composer js-comp-ver-5.4.7,vc_responsive

Buy Phone Outright vs Contract Canada: Legal Comparison 2021

Buy Phone Outright vs Contract Canada: Legal Comparison 2021

Buy Phone Outright vs Contract Canada

Are you in the market for a new phone but are unsure whether to buy it outright or sign a contract? This decision can have a significant impact on your finances and overall satisfaction with your phone. Let`s explore the pros and cons of each option to help you make an informed decision.

Buying Outright

When you buy a phone outright, you pay the full retail price upfront and are not tied to any contracts with a specific carrier. This option gives you the freedom to choose the carrier and plan that best suits your needs. Additionally, you have the flexibility to switch carriers or plans at any time without any penalties.


  • No commitment
  • Freedom to carrier and plan
  • No termination fees


  • upfront cost
  • No on the phone
  • May be for carrier promotions

Signing a Contract

On the other hand, signing a contract allows you to get a new phone at a subsidized price in exchange for committing to a specific carrier and plan for a certain period, typically 2 years. This option can make the upfront cost of the phone more affordable, but it does come with certain limitations and obligations.


  • upfront cost for the phone
  • Potential for promotions and discounts
  • Option to to a new phone mid-contract


  • commitment
  • termination fees
  • flexibility to switch carriers or plans

Comparing Costs

Let`s take a look at an example to compare the costs of buying a phone outright vs signing a contract. Assume the retail price of the phone is $1000 and the monthly plan is $60.

Buying Outright Signing a Contract
Upfront Cost $1000 $200
Monthly Plan Cost $60 $60
Total Cost Over 2 $2440 $1640

In this example, buying the phone outright results in a higher total cost over 2 years compared to signing a contract. However, it`s important to consider the potential savings from having the flexibility to switch plans or carriers, as well as the resale value of the phone.

Final Thoughts

Ultimately, the decision between buying a phone outright vs signing a contract depends on your individual preferences and financial situation. Consider your long-term needs, usage patterns, and the available options from different carriers before making a decision. That it`s not about the cost, but the value and that each offers.

Hopefully, this discussion has provided you with valuable insights to help you make the best choice for your next phone purchase.

Legal Contract: Purchase of Phone Outright vs. Contract in Canada

This contract (“Contract”) is entered into effective as of the date of acceptance by the parties, by and between the Buyer and the Seller.

1. Definitions
1.1 “Buyer” refers to the individual or entity purchasing the phone.
1.2 “Seller” refers to the individual or entity selling the phone.
1.3 “Phone” refers to the mobile device being purchased.
1.4 “Outright Purchase” refers to the act of buying the phone for the full retail price without entering into a contract with a service provider.
1.5 “Contract Purchase” refers to the act of purchasing the phone through a contract with a service provider, wherein the cost of the phone may be subsidized and paid over time.
2. Purchase Agreement
2.1 The Buyer agrees to purchase the Phone according to the terms of this Contract.
2.2 The Buyer may choose to purchase the Phone outright or through a contract with a service provider.
3. Legal Considerations
3.1 This Contract is subject to the laws of Canada.
3.2 The Buyer and Seller agree to comply with all applicable laws and regulations related to the purchase of the Phone.
4. Dispute Resolution
4.1 Any arising out of or to this Contract shall be through in the of Canada.
4.2 The party in any shall be to its attorney`s fees and from the party.

This Contract the agreement between the parties with to the subject and all and agreements and whether or relating to such subject.

Top 10 Legal Questions About Buying a Phone Outright vs Contract in Canada

Question Answer
1. Is it legal to buy a phone outright in Canada? Yes, it is legal to purchase a phone outright in Canada. Are no prohibiting the purchase of a phone.
2. What are the advantages of buying a phone outright? Buying a phone can save money in the run, as you be tied to a with a payment.
3. Are there any legal obligations when buying a phone outright? When buying a phone outright, you are not bound by any contractual obligations to a service provider, giving you more flexibility in choosing your phone plan.
4. Can I cancel a phone contract in Canada? Yes, you can cancel a phone contract in Canada, but there may be penalties for early termination. It`s important to review the terms of your contract before cancelling.
5. Are there any legal implications of signing a phone contract? Signing a phone contract legally binds you to the terms and conditions outlined in the contract, including monthly payments and service obligations.
6. What are the consequences of defaulting on a phone contract? Defaulting on a phone can result in penalties, to your score, and legal by the provider.
7. Can I negotiate the terms of a phone contract in Canada? It is to the terms of a phone with a provider, but are not to to any changes.
8. Are there consumer protection laws for phone contracts in Canada? Yes, there are protection in Canada that phone contracts, including the to within a timeframe and from practices.
9. What are my rights as a consumer when buying a phone outright? When buying a phone outright, you have the right to expect the phone to be free from defects and to receive accurate information about the product.
10. How can I protect myself legally when buying a phone outright or signing a contract? It`s to read and any before signing, and to be of your as a consumer. With a professional can provide guidance.
No Comments

Sorry, the comment form is closed at this time.