OCR A2 Law - The Law of Contract - Exclusion Clauses (7)

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  • Created by: Majid
  • Created on: 28-04-13 22:06

Exclusion Clauses (7)

The Unfair Terms In Consumer Contracts Regulations Act (UTCCR) '99: These regulations were developed by the European Union to standardise the law across the EU. It is unlike UCTA as this only applies to consumer contracts. They regulate whether a term of a contract is fair or unfair - if they're unfair the term isn't valid. An unfair term is one which is contrary to the test of 'good faith' because it causes an imbalance to a parties rights and to the detriment of a consumer.

What is the test of good faith? The test is similar to that laid under S11 of UCTA ... if bargaining strengths are unequal or if no negotiations have been made (etc) then term will be unfair.

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