Other articles have looked at fairness and transparency that apply to contract terms in more detail. However, there are some prohibited terms known as the blacklist. There are also grey listed terms which could be classed as unfair and fail the fairness requirement. Another article will discuss the grey list in more detail whilst this article about unfair contract terms will look at the blacklist. Here is your unfair contract terms guidance. In this post, we will discuss Unfair Contract Terms.
The Consumer Rights Act 2015 makes certain contract terms and one kind of consumer notice legally ineffective. They are not binding or enforceable by the trader against the consumer. Terms and notices can also be ineffective and unenforceable if they are unfair. However, blacklisted terms are automatically unenforceable so there is no need to apply the fairness requirement.
While any blacklisted term or notice is likely to be unfair, it is not true that any potentially unfair wording is likely to be blacklisted.
A trader cannot use a consumer contract term or notice to exclude or restrict liability for death or personal injury resulting from negligence. There are some exemptions to this which include contracts for insurance.
A trader cannot use a term that aims to relieve them from their ordinary obligation to ensure their products are of satisfactory quality and that their services are provided with reasonable care.
Terms that aim to exclude or restrict statutory rights and any remedies are not binding on the consumer.
Consumers have important rights when entering contracts for good, services, and digital content.
Digital content that has been paid for must also be of satisfactory quality, fit for purpose and as described. It is also a statutory requirement that the business must have the right to supply digital content that is to enable the consumer to use it or own it if ownership is being transferred. Usually the consumer is purchasing the right to use digital content under the terms of an end-user licence agreement.
Consumers enjoy additional protection where they are given information about the trader and/or the service. This means that if a business makes a statement about itself and its services, which the consumer is likely to see, it is likely to find itself legally bound to supply, for example, something that meets any description made.
Terms that aim to restrict the above rights are blacklisted.
If you have any questions regarding this article or contracts generally, please telephone our office on 02380 235979.
Unfair contract terms refer to provisions or clauses within a contractual agreement that are deemed unbalanced, unjust, or disadvantageous to one party, typically the consumer. These terms can place consumers at a significant disadvantage by limiting their rights, shifting disproportionate liabilities, or imposing unfair obligations. It is important to understand the concept of unfair contract terms to protect your rights and ensure fair and equitable agreements.
Unfair contract terms can manifest in various ways, including:
Unfair contract terms undermine the fundamental principles of fairness, equality, and transparency in contractual agreements. They can erode consumer confidence, limit choices, and lead to unfair outcomes. Recognizing and addressing unfair terms is crucial to ensuring a level playing field and protecting consumers from exploitation.
To safeguard your rights as a consumer, consider the following steps:
By understanding unfair contract terms and being vigilant about your rights as a consumer, you can navigate contractual agreements with confidence, promote fairness in business dealings, and contribute to a more equitable marketplace.
