(c) Per the Unfair Contract Terms Act 1977 and exclusion clause must be ‘reasonable’. That is to say it must not act unfairly against one party, and in particular to consumers. The Act regulates amongst others Business to Consumer contracts and seeks to protect consumers from unfair clauses whilst allowing them freedom of contract. In order to determine fairness the Act relies upon a number of subjective tests, and renders certain clauses void.
The Unfair Terms in Consumer Contracts Regulations 1999 applies to standard form consumer contracts – those that contain terms not varied by the consumer. This defines an unfair term as one which causes a significant imbalance between the contracting parties. The Regulations apply the same tests of reasonableness as UCTA 77, but additionally allows consumers to apply for an injunction in order to get an unfair term removed. |
