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Unfair Agreement

The regulations contain a number of terms that can be unfair, called the “grey list”. This list does not contain all the non-made terms, and in some cases, a term that is in the list may be correct. Similarly, a term that is not on the list may be considered unfair if it penalises the consumer. So you have the right to challenge a contract clause if you think it`s unfair – but it`s normally up to a court to decide if a clause is unfair. The Unfair Contract Terms Act of 1977 regulates clauses that exclude or limit clauses that are implied by common law or statute. Their general model is that where clauses restrict a party`s liability, including negligence, the clause must consist of an “adequacy check” in sections 11 and 2. It is the ability of both parties to take out insurance, their bargaining power and procurement alternatives, as well as the transparency of a concept. [6] In places, the law goes further. Section 2 (1) removes any time limit that would limit liability in the event of a person`s death or assault. Article 2(2) provides that any clause limiting liability for property damage must be subject to the “adequacy check”. In one of the first cases, George Mitchell Ltd v. Finney Lock Seeds Ltd,[7] a farmer successfully asserted that a clause limiting a cabbage seed seller`s liability to damages for substitute seeds and not to a much larger loss of profits after a crop loss was inappropriate. Sellers were in a better position to get insurance for the loss than buyers.

Under Article 3, companies may not limit their liability for breach of contract if they are dealing with “consumers” defined in Article 12 as a person who does not deal with someone who is in his business dealings or when they use a contract in writing by default, unless the time limit is the assessment of adequacy. [8] Section 6 provides that the implied terms of the Sale of Goods Act 1979 cannot be restricted unless appropriate. If a party is a “consumer”, the provisions of the LMS become mandatory in 1979. In other words, a company can never sell consumer goods that do not work, even if the consumer has signed a document with full knowledge of the exclusion clause. In accordance with section 13, it is added that amendments to simple exemption clauses remain considered to be exemption clauses covered by law. For example, in Smith vs. Eric S. Bush,[9] the House of Lords found that a surveyor`s time limit on liability for negligence was ineffective after the chimney fell through Mr.

Smith`s roof. The expert could buy insurance more easily than Mr. Smith. Although there was no contract between them, because section 1 (1) (b) applies to any communication that excludes liability for negligence and the expert exclusion clause could prevent a duty of care under customary law, section 13 “catches up” them when a liability “but for” the exclusion of liability: the exclusion is then potentially unfair. There are laws that protect you from unfair terms in standard consumer contracts….