Consumer Rights Act 2015 Continued , Unfair Terms
- Oct 23, 2022
- 3 min read
Hello, and welcome to the final Blog, for just now, on the Consumer Rights Act 2015. In this Blog, we will explore Unfair terms as defined by the act and how this can impact consumer contracts. To recap, once again, on the critical aspects of the legislation, the Consumer Rights Act 2015 became an implied term of the contract to all contract's consumer contracts agreed on or after 1 October 2015, where the contract involves the sale of goods, digital content and services.
Consumers' Rights Act applies when there is a contract between a trader and consumer to supply goods, digital content or a service, it does not cover an employment or business-to-business contract. Where an unfair term towards the consumer is included within the contract, it is not binding on the consumer or enforceable in court. This applies regardless of whether the consumer has signed the contract or ticked a box that they agree to the terms and conditions.
When is a Term Unfair:
Where, accounting for all circumstances existing when the contract was agreed, including any other contract on which the term depends and the nature of its contract, the term significantly tips the balance out of the consumers' favour
This does not include terms where the price is expressly agreed
What Happens When a Term of a Contract is Unfair?
Where a term is considered unfair and hence not binding on the consumer, the rest of the contract continues as far as reasonably practical. Therefore, because a term is unfair, it does not give the consumer the right not to meet their obligations regarding payment of the contract.
Whilst this list is not exhaustive, it's worth highlighting some key terms which may appear in a contract which could be considered unfair:
Any Term which limits the right of the consumer to that of the trader when the trader fails to meet its performance obligation
Any Term which makes the consumer liable to pay excessively high values of compensation for services which were contracted but the consumer decided not to proceed
Any Term where the trader may dissolve the contract on a discretionary basis, but the same option is not provided to the consumer
Any term which allows the trader to change the terms of the contract without a valid reason stated in the contract
Any term which allows the trader to decide the price payable under the contract when the contract has previously been agreed with no price or method of determining the price is stated in the agreement.
Any term in which the trader can change the price of goods or services without giving the consumer the right to cancel if the price is too high in relation to the initially agreed price
Any term binds the consumer to meet all of their obligations when the trader has not met theirs.
The rights set out above condense the consumer's rights relating to Unfair Terms under the Consumer Rights Act 2015 and, where required, can be enforced in court. However, in our experience, it is often best to begin discussions early with the other party to reach an agreeable solution. Where a challenge occurs, Velocity Dispute Management can assist in finding a suitable solution as quickly as possible. If you wish to discuss how Velocity Dispute Management can support you or discuss this Blog's content, please get in touch with admin@velocitydisputemanagemet.co.uk or book a strategic review meeting where one of our consultants will review your situation and create an action plan to utilise your rights in law to resolve the problem.
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