Unfair Terms

Many local businesses have terms and conditions of sale or purchase when they sell or buy goods. This is very useful protection. The Government is consulting on when terms are valid and when they might be ‘unfair’.

Christina Smith says “The Office of Fair Trading is consulting on its guidance on what is an unfair term in a consumer contract. This is a very interesting document as the OFT sets out which terms it regards as unfair and which it does not. Revised guidance is due by August. We are often asked to draft contract terms for clients and it is surprising how some companies have no written terms of business at all.

We can draft standard terms of sale or purchase and advise you on how to ensure your terms stick. Some of our clients also have internet websites and need terms and conditions for those too. As the law changes fairly frequently in this field, it is wise to take legal advice. Sometimes a term which appears very helpful saying there is no liability on the part of a supplier is invalid as the law ensures that unreasonable or unfair terms in some contracts are unacceptable. This is why it is sensible to take legal advice to ensure the terms limit and exclude liability as much as possible to protect your position but do not go too far in excluding so much liability the entire clause is void.

Also, anyone who employs salesmen to sell their goods or services needs to prepare for new laws due in December which will prohibit 31 listed trading practices used to put pressure on customers and make other ‘unfair trading’ practices subject to challenge.

Contact Christina on 023 9221 0170 for further information.