Fairness of contract terms

Do you sell to consumers or are you a consumer? If so, then read on.

The Unfair Terms in Consumer Contracts Regulations were introduced in 1995 and were intended to eradicate oppressive clauses in standard form consumer contracts. The Regulations apply to terms in contracts (whether written or oral) between consumers and businesses which are not individually negotiated. Any such term which is contrary to the requirement of good faith and which causes a significant imbalance in favour of the business is unfair and not binding on the consumer. There is an exception from the fairness requirement for "core terms" (such as those provisions which deal with price). However, these core terms do not escape from the requirement that all terms in consumer contracts should be expressed in plain, intelligible language.