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Aug 6, 2024 · Businesses must adhere to UK consumer protection laws, including the Consumer Rights Act, which outlines the rights of consumers when purchasing goods or services. Any terms and conditions should be written in clear and concise language, and businesses should ensure that customers fully understand what they are agreeing to when making a purchase.
- Introduction
- What Is Unfair?
- Common Myths About Contract Terms
- Top Tips When Writing Your Contract Terms
- Deposits, Advance Payment and Cancellation Charges
- Excessive Charges and Disproportionate Sanctions
- Cancelling A Contract: When and How
- Responsibility If Things Go Wrong
- What Are Statutory Rights?
- Changing The Terms of A Contract
Businesses that deal with consumers need to make sure their contract terms are fair. The Consumer Rights Act 2015aims to protect consumers against unfair contract terms and notices. For the purpose of this guide we often use the word ‘you’ to refer to the business and ‘customer’ to mean consumer. An unfair term is not legally binding on your custom...
Generally, contract terms and notices are unfair if they put the customer at an unfair disadvantage. The law applies a fairness test that starts by asking whether the wording used tilts the rights and responsibilities between the customer and the trader too much in favour of the trader. The test is applied by looking at the words and how they could...
Just because terms are written and signed, it doesn’t make them legal. A contract term and notice has to be fair to be legally binding on your customer. If it isn’t, they can challenge it – including in court if necessary. Enforcers (such as the CMA and Trading Standards) can also bring cases to stop you using it. For a more detailed breakdown of t...
When writing your terms, put yourself in your customers’ shoes. Think about how they might read and access them. For a more detailed breakdown of the information see:
Deposits are a customer’s way of reserving your goods or services. Advance payments help you to pay your business’s actual costs during a contract. If your customer cancels and it’s not your fault, you’ve got the right to protect yourself, but what you keep must take into account what your business is actually losing as a result. It must not be exc...
Terms that allow you to impose disproportionately high charges on your customers for breach of contract are likely to be unfair. There is unlikely to be any objection to terms which, in plain language, make your customers pay for the financial losses that they have directly caused where they are at fault. Another kind of financial sanction that cou...
You may want to include terms in your contract that allow both you and your customer legitimate reasons for bringing the contract to an end. However, if you cancel a contract you could leave your customer with significant problems and potentially facing costs. If this is the case, then a term which allows you to cancel the contract whenever you lik...
Terms which allow you to remove or limit your liability to your customers when you are at fault and things go wrong are likely to be unfair. This includes terms that prevent or hinder your customer from seeking redress (eg compensation) when you are at fault. The law singles out terms that take away or reduce your customer’s statutory rights. They ...
Statutory rights include requirements that: 1. goods must match the description given to them 2. be of satisfactory quality and fit for a particular purpose 3. services must be carried out with ‘reasonable skill and care’ For more information about what your customer’s statutory rights are (including those relating to digital content) and detail on...
If you have a term that gives you the right to change elements of a contract after it has been agreed with your customer, this is known as a variation clause. You might try to use this type of term to adapt a long-term contract if the circumstances around it change. Variation clauses are likely to be unfair if they have the effect of a ‘blank chequ...
May 29, 2024 · They provide a clear understanding of the terms of sale or service, protect the business and customers, and ensure compliance with UK laws and regulations. By following the key considerations outlined in this guide, businesses can create terms and conditions that are tailored to their specific needs and customer base and that provide a positive experience for their customers.
- Interpretation. The following definitions and rules of interpretation apply to the contract. 1.1 Definitions. Applicable laws: all relevant laws, rules, regulations, industry standards, codes of practice, guidance’s issued by regulatory authorities, as amended from time to time and as applicable in England and Wales.
- Basis of contract. 2.1 Upon request, UKHSA shall supply to the customer a specification. The specification constitutes an offer by UKHSA to supply goods and/or services in accordance with these conditions.
- Goods. 3.1 The goods shall be described in the specification. 3.2 To the extent that any goods are manufactured or altered in accordance with the customer’s instructions, the customer shall indemnify UKHSA against all liabilities, costs, expenses, damages and losses (including any direct, indirect or consequential losses, loss of profit, loss of reputation and all interest, penalties and legal and other reasonable professional costs and expenses) suffered or incurred by UKHSA in connection with any claim made against UKHSA for actual or alleged infringement of a third party’s intellectual property rights arising out of or in connection with UKHSA following the customer’s instructions.
- Delivery of goods. 4.1 UKHSA shall deliver the goods to the location set out in the specification or such other location as the parties may agree (delivery location) at any time after UKHSA notifies the customer that the goods are ready.
Consumer contracts: common terms and conditions. A note outlining the main issues to consider when drafting or reviewing terms and conditions for use with consumers, including in relation to duration, renewal, delivery, pricing, payments, deposits, variation, limitation of liability, termination, governing law and jurisdiction.
Sep 7, 2023 · Credit and Payment Terms: If the business extends credit to customers or offers payment plans, terms and conditions can outline the terms of these arrangements. Community Guidelines: For businesses with user-generated content or online communities, terms and conditions can include guidelines for acceptable behavior, content posting, and moderation policies.
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1. Definitions and interpretation. In this section, list and define the key terms you’ll refer to within the terms and conditions. For example, ‘Contractor’, ‘Client’, ‘Estimate’, ‘Contract’, ‘Quotation’, ‘Deposit’, ‘We/Us/Our’ etc. If you are undertaking work for a business, it may be that your customer has its ...
