Unfair contract terms

Introducing unfair contract terms

This overview is a guide to the Lexis+® UK Financial Services content within the Unfair contract terms subtopic, with links to the appropriate materials.

Unfair terms in consumer contracts

All suppliers using standard contract terms with consumers must apply a test of fairness to terms that have not been individually negotiated subject to certain exempt terms. A standard term will be deemed 'unfair' by the Competition and Markets Authority (CMA) or other enforcing bodies if contrary to the requirement of good faith it creates a material imbalance in the parties' rights and obligations under the contract, to the consumer's detriment. Enforcement action will be taken against businesses on behalf of consumers generally but enforcers cannot pursue an offender on behalf of an individual consumer or seek personal redress. Enforcers can also compel a business to amend unfair terms or undertake not to continue using an unfair term.

Unfair terms in contracts

English common law generally recognises the principle of freedom to contract. There is a limited amount of legislation that interferes with this principle. Key controls do address what are considered to

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