Unfair Terms Of A Standard Form Contract Essay

Explain why it is important to have an intention to create legal relations when making a contract and why is consideration of the parties to the agreement necessary-:

court may find the contract “unconscionable” There is a broad scope for this is not extremely strict and

content and you must not be unjustly enriched by such a contract or it could be deemed unenforceable

Pat was very frustrated because she wanted to purchase a home but lacked the funds or credit to do so even though Pat was expecting shortly to receive a one-half million dollar final installment payment for some land she sold several years earlier. Dan knew that Pat was very interested in purchasing a home and approached Pat with a proposal to assist Pat in buying a home. Dan told Pat that he would help Pat with the financing. After finding the home she wanted to buy for $250,000, Dan and Pat orally agreed that Dan would purchase the home and "when you come up with the money, I (Dan) will sell it to you (Pat) for $250,000 plus a fair commission to be determined."

Overall in the briefing sheet I have made sure that all evidence is provided, also that a clear explanation is made of how a contract protects the consumer and what happens if that contract is breached. Mainly information is suggested on the different conditions made by the sales of goods act such as title, description, fitness for purpose and also satisfactory quality. Factors that invalidate contracts:

Consumer guarantees refer to the comprehensive set of rights for the consumer in regards to defective goods. These rights allow the consumer to confront a business over its implied conditions. Implied conditions are unwritten terms of a contract that are usually assumed, such as a product being of acceptable quality prior to purchase. The product must be fit for the purpose of which it is being sold and it must be acceptable in appearance, safety and durability as well as being free from defects. Breaching this concept is considered illegal and can have serious repercussions in accordance to a business reputation or fees for its illegal breach.

The law of unfair terms in consumer contracts have experienced changes over the years, the most significant of which was the Consumer Rights Act which came into effect on October 1st 2015. However, before the Consumer Rights Act 2015 (CRA 2015), unfair terms in consumer contracts were covered under two pieces of legislation; the Unfair Contract Terms Act 1977(UCTA 1977) and the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCR 1999) . The UCTA 1977 and UTCCR 1999 provided liability for transactions occurring in the course of a business as well as business and consumer contracts. Both UCTA 1977 and UTCCR 1999 provided protection for consumers from terms in a contract so as to prevent them from being at a disadvantage for not read contractual terms and conditions. The UCTA 1977 defined a consumer under s.12 (1) (a); as a party dealing not in the course of a business and not holding himself to do so; while in s12 (1) (b) the other party is acting in the course of a business. The UTCCR’s definition was very narrow, Regulation 3 stated that a consumer must be a natural person that is not a legal person e.g. a company who contracts outside his business.

However, as the years have gone on parliament have brought out new pieces of legislation and are constantly trying to give consumers equal bargaining power. The main issue with the two most recent pieces of legislation, The Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contract Regulations 1999, is that there is a lack of clarity. The 1977 act requires a ‘test of reasonableness’ while the Regulations 1999 requires a test of ‘good faith’ and ‘imbalance’. Neither pieces of legislation are very clear about what an unfair term actually is within a contract. Therefore, a new Act may be the answer if it can address the problems with the previous pieces of

Contracts rarely stay the same, they are constantly changing and the successful businessperson has to be flexible in order to succeed.

My first concern is for such a significant condition in the contract, I am surprised it is not highlighted in the contents of the terms and conditions, whilst other sections such as behaviour and compliance, smoking policy, and alcohol and drugs are; and why it is hidden amongst general information?

other in order to form a contract, the value of the consideration need not be

The contract in English law enhances principle of freedom of contract. Indeed, the terms of the contract is freely determined and agreed by the parties. However, there are various circumstances in which additional terms may be implied into the agreement. The aim of implied terms is often to provide a supplement to a contractual agreement in the interest of making bargain more effective, to achieve fairness between the parties and to alleviate hardship.

Contracts are used in many different forms and for just as many different situations within our everyday lives. Some contracts are more involved than others and for some; contracts are an essential of their success. As we continue, we will take a look at different types of contracts with the main focus on enforceable contracts. With so many elements that are incorporated into any contract, the six essential elements of enforceable contracts will be the main focus of this writing. Having a clearer understanding of the essentials of life will help prepare us for life’s curves that may come our way.

Section 12(1) of the act state that, “A stipulation in a contract of may be a condition or a warranty” explaining that all terms and stipulations of the contract of sale are not of equal important and also of same consequences, however, some of terms are so vital to the contract that their failure to fulfil would cause breach of contract as a whole. Such terms are known as “Conditions”. Further, a term which are not of so vital importance is known as “Warranty”.

Law 2: Under statute law, unfair terms within a contract are deemed by the court as unenforceable. As a result, the court will remove these terms from the standard form contract, and treat the contract as if the term was never present (Australian Consumer Law s 23(1)). One such example of unfair terms is when a term that allows one party (but not the other) to vary the terms of the contract after it has been agreed to (ACL s 25(1)(d)). In order to void the term under the Act (ACL s 23 (1)), two main requirements must be satisfied: