Unfair Terms in UK Law
Director General of Fair Trading v First National Bank Plc
The object of the regulations and the directive is to protect consumers against the inclusion of unfair and prejudicial terms in standard-form contracts into which they enter, and that object would plainly be frustrated if regulation 3(2)(b) were so broadly interpreted as to cover any terms other than those falling squarely within it. In my opinion the term, as part of a provision prescribing the consequences of default, plainly does not fall within it.
Openness requires that the terms should be expressed fully, clearly and legibly, containing no concealed pitfalls or traps. Fair dealing requires that a supplier should not, whether deliberately or unconsciously, take advantage of the consumer's necessity, indigence, lack of experience, unfamiliarity with the subject matter of the contract, weak bargaining position or any other factor listed in or analogous to those listed in Schedule 2 of the regulations.
It is obviously useful to assess the impact of an impugned term on the parties' rights and obligations by comparing the effect of the contract with the term and the effect it would have without it.
George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd
It must follow, in my view, that, when asked to review such a decision on appeal, the appellate court should treat the original decision with the utmost respect and refrain from interference with it unless satisfied that it proceeded upon some erroneous principle or was plainly and obviously wrong.
Hadley Design Associates Ltd v The Lord Mayor and Citizens of the City of Westminster
Something more is needed, and on principle that something more, in my judgment, is that the relevant terms should exist in written form prior to the possibility of the making of the relevant agreement arising, thus being "written ", and they should be intended to be adopted more or less automatically in all transactions of a particular type without any significant opportunity for negotiation, thus being "standard".
Watford Electronics Ltd v Sanderson CFL Ltd
They should be taken to be the best judge on the question whether the terms of the agreement are reasonable. The court should not assume that either is likely to commit his company to an agreement which he thinks is unfair, or which he thinks includes unreasonable terms., Unless satisfied that one party has, in effect, taken unfair advantage of the other – or that a term is so unreasonable that it cannot properly have been understood or considered the court should not interfere.
Photo Production Ltd v Securicor Transport Ltd
After this Act, in commercial matters generally, when the parties are not of unequal bargaining power, and when risks are normally borne by insurance, not only is the case for judicial intervention undemonstrated, but there is everything to be said, and this seems to have been Parliament's intention, for leaving the parties free to apportion the risks as they think fit and for respecting their decisions.
- Unfair Contract Terms Act 1977
- Unfair Terms in Consumer Contracts Regulations 1999
Consumer Rights Act 2015
...... applying to contracts to which this Part applies, see Part 2 (unfair terms). S-2 . Key definitions 2 Key definitions . (1) These ......
- Unfair Terms in Consumer Contracts Regulations 1994
- Unifying Unfair Terms Legislation
Unfair Contract Terms, Unfair Prices and Bank Charges
This note considers how the Unfair Terms in Consumer Contracts Directive 1993 draws the line between the review of unfair contract terms and the review of unfair contracts (and, in particular, unfa...
- Unfair Contract Terms: The European Approach
- Scope and Fairness of the Unfair Terms in Consumer Contracts Regulations: Director General of Fair Trading v First National Bank
CMA publishes consultation on unfair contract terms guidance
The Competition and Markets Authority (CMA) is consulting on draft guidance on the unfair terms provisions in the Consumer Rights Act 2015 (the Act). Broadly, the Act gives effect in the UK to the ...
With exclusion clauses and unfair terms, the house doesn’t always win
Exclusion clauses in consumer contracts must be adequately signposted, with their meaning and effect highlighted: Andrew Green v Petfre (t/a Betfred). In 2018, Andrew Green played a blackjack game...
Consumer Rights Act 2015 Implementation in October 2015 - Do your consumer contracts have potentially unfair terms?
In this article, written for Compliance Monitor, Nicholas Ralph of Dentons looks at how the unfair terms provisions of the CRA may impact financial services firms. The Consumer...
- Late Payment: Challenging Grossly Unfair Terms And Practices