Unfair consumer contracts

You can’t enforce unfair terms in a consumer contract, or unfair consumer notices (eg signs on a shop wall or in a car park). You can never enforce terms or notices that try to avoid your responsibility for: death injury faulty goods goods that aren’t as described selling goods that aren’t yours to sell You might not be able to enforce terms or notices if they try to avoid your responsibility in other ways, eg: delays unsatisfactory services not doing what was agreed Your contract terms might also be unfair if they weigh the contract significantly in your favour, eg: by providing for excessive cancellation charges and automatic loss of all upfront payments by creating unbalanced rights, eg being able to cancel a contract at any time, but requiring the customer to give 3 months’ notice by allowing you to increase the agreed price at a later date Your contract won’t be unfair just because it sets a price that’s higher than another business charges. Contracts must be written in plain language to avoid being misleading and unfair. If a customer complains It’s up to the courts to decide if a term in your contract or wording in your notices is unfair. You can be taken to court by the Competition and Markets Authority or a local trading standards office to stop you using unfair terms or notices. Consumers can also take legal action themselves to challenge unfair terms or notices. Read the guidance on unfair terms .

Unfair business contracts

Your standard contract would be unfair if you try to not take responsibility for: death or injury - under any circumstances losses caused by negligence - unless to do so is ‘reasonable’ defective or poor quality goods - unless to do so is ‘reasonable’ You must not try to claim you’re not responsible for these things. What is reasonable It’s up to the courts to decide what is reasonable. Courts will take into account: the information available to both parties when the contract was drawn up if the contract was negotiated or in standard form if the buyer had the bargaining power to negotiate better terms

Implied and statutory rights

Your customers have implied rights when buying your goods or services. Some implied rights are also known as ‘statutory rights’. Products Implied rights mean a product must be: as described of satisfactory quality, eg safe, in working order, free of defects fit for purpose - capable of doing what the customer has asked for Contracts for hiring, hire purchase and part exchange also have these implied rights. Consumers always have these implied rights when buying goods - the contract can’t legally state otherwise. Services Implied rights mean services must be carried out: with reasonable care and skill within a reasonable time (if no specific time has been agreed) for a reasonable charge (if no exact price has been agreed) You’re unlikely to be able to enforce terms in a consumer contract for services if they try to deny a customer’s implied rights. Business contracts Your business customers have implied rights unless the contract legally states otherwise in a way a court would decide is reasonable .

Avoid unfair terms in sales contracts

Overview

Your standard sales contracts must be ‘fair’ or you won’t be able to enforce them.

There are different rules on what’s fair for:

consumer contracts
business contracts

You’re legally responsible for certain situations, eg when goods you sell are faulty. You must not try to claim you’re not responsible.

You have more responsibilities towards consumers than towards other businesses.

Customers’ rights

Your customers also have implied rights when buying your goods or services, unless the contract legally states otherwise.

View a printable version of the whole guide

Avoid unfair terms in sales contracts

Overview

Customers’ rights

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Avoid unfair terms in sales contracts

Overview

Customers’ rights

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