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- A provision will fall foul of this rule if it imposes liability on a party for breach of an obligation which is out of all proportion to the innocent party’s legitimate interest in enforcing that obligation. Excessive default interest rates and unduly onerous liquidated damages clauses may be capable of being challenged on this basis.
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May 8, 2024 · Why do courts strike out unfair contract terms? Because a court can hold some clauses so unreasonable that they should not be enforceable by law. This test has a relatively high threshold, so not many contract terms fall foul of this test.
Jan 31, 2023 · The reasons behind why unfair terms are included in contracts can vary, here are several examples: They may reflect an inequality of bargaining power. The party proposing the terms may have been ‘looking to see what they can get away with’.
Dec 25, 2023 · While contracts are generally intended to be fair and balanced, there are instances where one party may be at a disadvantage due to unfair terms. Unfair contractual terms refer to provisions that give one party an unfair advantage over the other, contrary to the principles of fairness and justice.
Oct 15, 2023 · Unfair contract terms generally refer to clauses or provisions within a contract that create an imbalance of rights and obligations between the parties involved. These terms often favor one party over the other and may significantly limit or exclude certain rights or remedies.
May 16, 2024 · An unfair contract term is an unfair exclusion clause. An exclusion clause tries to exclude one company from being liable to another in a specific situation. One example would include a clause trying to limit the compensation payable to your business from another company if they breach the written agreement.
Jun 23, 2021 · Whilst parties are of course free to agree such limitations, care must be taken to ensure that the limitation or exclusion does not fall foul of the reasonableness test in the Unfair Contract Terms Act 1977 (UCTA), a point considered recently in Phoenix Interior Design Ltd v. Henley Homes PLC [2021] EWHC 1573 (QB).
If any of your terms or notices are unfair under Part 2 of the Act, you could find that they are not legally binding on consumers, and you could face enforcement action if they fail either the...
