Class notes
Unfair Contract Terms
- Course
- Institution
Full Contract law lecture notes, with cases, case descriptions, current law and everything that could be on the exam.
[Show more]
Seller
Followlilyorr
Reviews received
Content preview
Unfair contract terms The case for state interference cf free markets
[A] The use of standard form contracts
Schroeder Music Publishing v. Macaulay –
“Standard forms of contracts are of two kinds. The first, of very
ancient origin, are those which set out the terms upon which
mercantile transactions of common occurrence are to be carried
out... The standard clauses in these contracts have been settled
over the years by negotiation by representatives of the commercial
interests involved”
“The same presumption, however, does not apply to the other kind
of standard form of contract. This is of comparatively modern
origin… The terms of this kind of standard form of contract have not
been the subject of negotiation between the parties to it… They
have been dictated by that party whose bargaining power, either
exercised alone or in conjunction with others providing similar goods
or services, enables him to say: …
The contract of adhesion – if you want these goods or services at all,
these are the only terms on which they are obtainable – take it or
leave it
State interference & unfair terms:
Rules specifically focused on fairness, but principles or
misrepresentation, estoppel and mistake also have this effect, albeit
indirect.
Policy makers forced to resolve tensions between freedom to
contract and enforcing ‘unfair’ agreements
The cost of non-interference: e.g. credit terms:
Relationship between level of service and price – max 5% APR –
have to have a good credit score – greater market for illegitimate
markets (loan sharks)
Effect on market development
Change nature but no substance of unfairness (e.g. if impose max
interest rate)
Identifying and resolving market failure
Collins regulating contracts (1999)
“The correct inference is that [unfair] contracts are much harder to
detect than we might suppose”
One rule or many?
‘Open textured’ tests – behavior much be reasonable
Allows consideration of fairness in all the circumstances
Cf. fixed, rigid standard
How to enforce?
Private enforcement – consumers: resources and expertise
Public bodies and monitoring costs
[B] Regulation: A brief history:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lilyorr. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.50. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now