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Unit 21 P5 Explain the effect of terms in a contract
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Unit 21 P5 Explanation of the effect of terms in a contractIntroduction
In this assignment I am going to explain what the
purpose of the next regulations is and apply and
compare them to the terms in my athlete
membership contract terms form P4.
Unfair contract terms act 1977
This act only applies to businesses not contracts
made between individuals and protects the second
party from unfair terms, the terms made need to
meet certain guidelines. These guidelines are not
really clear, the terms need to be reasonable, it’s
for the court to decide. It limits the extent to which
one of the parties can use an exclusion clause,
although there aren’t clear limits. The act excludes and restricts liability, makes fair liabilities,
restricts the rights and remedies of an aggrieved party and restricts rules of evidence and
procedure. The same goes for reasonableness, it’s not defined what is and what isn’t
reasonable.
The unfair terms in consumer contract regulations 1999
Fair terms are terms made up in good faith, if court states that a terms is unfair it will be
removed from the contract. When one of or both parties didn’t act fair to the other, and for
example, have offered any inducements to make the other agree to the contract.
Court principles of unfair: ‘’If a contractual term has not been individually negotiated and the
term causes significant imbalance in the parties' rights and obligations, then the term is
contrary to the requirement of good faith.’’ (Unfair Terms in Consumer Contracts Regulations
1999, 2019)
The consumer protection regulations 2000 (online selling)
This regulation protects customers that order online, thus via Internet, digital television, mail
order, phone, and fax. There are certain terms that businesses need to follow in order to sell
products online. Customers have certain rights when closing an contract online: cancelling the
contract within a min. of seven
working days ( since 2013 fourteen
working days), effects after
cancellation (for example, getting
notified during the process),
payback when money is charged
fraudulently, returning unsolicited
goods, business needs to meet the
customer protection legislation in
the contract terms.
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