Business Terms

Are the standard terms and conditions you use in your business fair and reasonable? In October, Ryanair agreed to change its contract terms as they were unfair, after action by the Office of Fair Trading. Stuart Nuttall says:

Are the standard terms and conditions you use in your business fair and reasonable? In October, Ryanair agreed to change its contract terms as they were unfair, after action by the Office of Fair Trading. Stuart Nuttall says:

“Terms which are too one-sided can be invalid so it pays to have your terms regularly checked by lawyers, particularly to take account of legal changes. The concerns in the recent case included:

• Ryanair's liability for damage or delay to sporting equipment, infant equipment, medical/mobility equipment and musical instruments - Ryanair's terms excluded liability for damage or delay to the above items and stated that they were carried on a 'limited release basis' - in other words, at the passenger's own risk. Ryanair has now removed these exclusions of liability from its terms and conditions.


• Ryanair's liability for baggage claims - Ryanair required that if an item of baggage was reported as lost and not found within 21 days, consumers would have to make a further claim within a further 21 days, otherwise Ryanair excluded liability for the lost baggage. Ryanair amended the terms so that the consumer is not required to make a further claim within the 21-day period, and also removed the requirement that consumers complete a 'Property Irregularity Report' when making a claim for damaged or delayed baggage.


• Ryanair's liability in the event that flights are delayed or cancelled, or passengers are denied boarding a flight - the OFT was concerned about the options that Ryanair offered to consumers in these situations, and considered that Ryanair's terms did not reflect consumers' full rights under the relevant EU Regulation. Ryanair has now amended these terms and included a copy of the notice setting out these rights on its website.

If you exclude and limit liability to your customers you need to take account of unfair terms law. If you supply to consumers, the Unfair Terms in the Consumer Contracts Regulations 1999 may apply, and unfair terms will be void. The Government is expected to introduce a new unfair terms bill next year so changes in this field are likely. Call Stuart on 023 9286 2424 for further information.