Unfair Contract Terms
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Unfair Contract Terms
Unfair terms in contracts
As consumers, you are protected against unfair standard terms in contracts you make with traders by the Unfair Terms in Consumer Contracts Regulations (UTCCRs).
The UTCCRs can protect you from terms that reduce your statutory or common law rights and from terms that seek to impose unfair burdens on you over and above the ordinary rules of law.
An unfair term in a contract covered by the UTCCRs is not binding on you.
Unfair terms in contracts - what is an unfair term?
An unfair term in a contract covered by the Unfair Terms in Consumer Contract Regulations (UTCCRs) is not binding on you.
Test of fairness
A term is unfair if:
contrary to the requirement of good faith it causes a significant imbalance in the parties' rights and obligations under the contract, to the detriment of consumers.
'Good faith' means that traders must deal fairly and openly with you.
Although standard terms may be drafted to protect commercial needs, they must also take account of the your interests and rights by going no further than is necessary to protect those legitimate commercial interests.
The plain language requirement
According to the UTCCRs, a standard term must be expressed in plain and intelligible language. A term is open to challenge if it could put you at a disadvantage because you are not clear about its meaning - even if its meaning could be worked out by a lawyer...