If you enter contracts on behalf of your business, it is integral that you can identify unfair terms. Contracts with unfair terms can risk your business breaching its statutory obligations. Furthermore, courts strike out unfair contract terms as being unenforceable, so it is essential that your business can recognise them. This article will explain what unfair contract terms are and provide five practical examples so you do not mistakenly rely on one.<\/p>\n\n\n\n
An unfair contract term is a term that disadvantages a party to a large extent. The rules on unfair contract terms vary depending on the nature of the contractual relationship. For instance, the rules may vary if the relationship is between a business and a consumer or between a business and a business. <\/p>\n\n\n\n
A term can be unfair if:<\/p>\n\n\n\n
The \u2018bad faith\u2019 aspect simply means you must design, negotiate, and agree to the contract fairly. This includes doing so with no undue pressure. In addition, you can assess certain terms for fairness, such as terms on the price of a contract. <\/p>\n\n\n\n
However, one way a term will not be assessed for fairness is if the term is both prominent and transparent. Usually, this will be the case if you have made it clear to the other party that the particularly onerous term<\/a> is a part of your agreement.<\/p>\n<\/div>\n\n\n\n Let us consider five examples of unfair contract terms below.<\/p>\n\n\n\n A good example would be a clause that seeks to limit your company\u2019s liability for personal injury or death it causes. Our courts acknowledge that death or serious personal injury is uncommon. However, on those rare occasions, it is only fair that the relevant company is liable to pay compensation rather than relying on the small print.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n1. Automatically Invalid Negligence Clause<\/h2>\n\n\n\n