ASSIGNMENT ID
1007697
SUBJECT AREA Self improvement
DOCUMENT TYPE Essay
CREATED ON 1st February 2018

Unfair Term in a Contract Essay

Unfair Term in a Contract After the Treaty of Maastricht, the European Community created a directive on Unfair Terms in Consumer Contracts 1993. This instructed member states to pass domestic legislation to offer consumer protection. Consequently, the UK Government made the Unfair Terms in Consumer Contracts Regulations 1994 that have now been changed with the Unfair Terms in Consumer Contracts Regulations 1999. The chief purpose of the new legislation would be for UK Law to be drafted more closely to the wording of the National Legislation, to help avoid disagreements between the two. The principle change in the 1994 regulations as well as the 1999 regulations are only that more institutions are now able to enforce the laws, outside of the Director-General of Fair Trading. A unfair term is defined in Regulation 5(1) of the Unfair Terms in Consumer Contracts Regulations 1999 as; ‘ A contractual term that hasn't been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties rights and duties arising under the contract, to the detriment of the consumer’ 1 In addition to the particular 6 of the same Regulations states that, ‘. . The fairness of a contractual term shall be assessed, taking into account the nature of the products or services where the contract was concluded and by referring, at the time of conclusion of the contract and to all the other terms of this contract or of another contract in which it is dependent.2 Program 2 of the 1999 regulations contains a record of 17 non comprehensive and indicative terms wh...

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