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What are "unfair terms?

This is an area of law covered by the Unfair Contract Terms Act 1977. The Act does not cover all unfair contract terms, but just exemption clauses. It applies only to contracts within the course of a business. The Act seeks to limit the effectiveness of clauses that exclude or restrict liability. The Act covers contractual, tortious and statutory negligence. Under the Act, there are clauses which are automatically void whilst there are others which are valid only if regarded as “reasonable.”

Matters have moved on further with the implementation of the Unfair Terms in Consumer Contracts Regulations 1999, which applied the EU Directive on Unfair Terms in Consumer Contracts. These Regulations apply to any term in a contract between a seller or supplier and a consumer where the term has not been individually negotiated, that is, it has been drafted in advance.

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The Legal Company
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