When a dispute arises over a clause in a contract, it is easy for the party defending this clause to say ‘well, you should have read the contract’. But how many of us actually take the time to trawl through the small print when signing up to an agreement? Most of us will assume good faith, and rely on our statutory rights to protect us. However, complaints regarding minimum term clauses in mobile phone contracts and gym membership contracts, as well as the use of exclusion or indemnity clauses by unscrupulous firms is proof that this can be a false assumption.
Such contract terms may be found to be unfair, and hence legally unenforceable. For guidance on this, we refer to the Unfair Contract Terms Act 1977. In a nutshell, this piece of legislation protects consumers who enter into legally binding agreements with suppliers where the contract is biased in favour of the supplier. Unfair clauses are those which try to exclude any of the following:
- liability for negligence in the event of death or personal injury. Liability for loss or damage may be excluded, but only where it is considered reasonable.
- liability for breach of contract. This includes situations in which the supplier did not carry out their contractual obligations (the item was not as described or the service not carried out)
- Indemnity clauses are those which protect an individual or a supplier from legal action in the event of professional negligence
- Product guarantees designed to protect the consumer in case of damage of defect
- Statutory rights with regard to Sale of Goods and Supply of Goods and Services legislation.
- Misrepresentation in the form of false or inaccurate claims
The following are also taken into account when deciding whether a clause is ‘reasonable’ or not:
- The relative strengths of supplier and consumer and whether there is a significant imbalance
- Whether you were offered an inducement to agree to the term
- Whether the items purchased were produced or adapted to your particular requirements.
More recently introduced European Regulations clarify further definitions of what constitutes ‘unfair’.
- Making the arrangement legally binding on you, but not on the supplier.
- Allowing the supplier to retain money in the event that you cancel, but not obliging the supplier to pay compensation in the event that they cancel.
- The requirement for you to pay cancellation charges which are disproportionately high.
- Allowing the supplier to dissolve the contract on a discretionary basis, without giving you the same right.
- Allowing the supplier to cancel the contract without reasonable notice to you.
- Automatic contract renewals where you are not given reasonable opportunity to prevent the renewal.
- Incorporating legally binding contractual terms without giving you reasonable opportunity to become familiar with them before signing.
- Allowing the seller to alter the terms of the contract without a valid reason which is specified in the contract.
- Allowing the supplier to determine the price at the time of delivery, or significantly increasing the price without giving you the chance to cancel.
- Giving the supplier the right to determine whether the goods you receive are as described or allowing him to interpret contractual terms as he sees fit.
- Legally obliging you to fulfil your obligations, while not obliging the supplier to fulfil his.
- Allowing the seller to transfer his rights and obligations if it affects any product guarantees you may have with him.
- Not allowing or restricting your right to take legal action against him for negligence or breach of contract
For further information, see the regulations themselves:
- Unfair Terms in Consumer Contracts Regulations 1999
(External link to PDF)
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Well personally I am trying to avoid everything that needs a contract but its almost impossible ,..I intend to look for 12 month if something happens you have to get in tango with companies I have gone through similar problems
I need some advice please. I joined exercise for less in Sunderland when it first opened. I paid the higher rate so that I could leave whenever I wanted £12 per month. On joining I asked the man who signed me up what I do when I want to leave. He tells me that I just cancel the payment with my bank. I decided I wanted to join a different gym so I canceled the payment with my bank. Months later I receive a letter from a debt collection agency under the same company umbrella as exercise for less stating that I have not responded to previous correspondance and that I now owe them over £180 !!!! I received no previous corespondnce at all and was quite shocked to get this letter. I have spoken to the gym who just seem to be passing me from pillar to post and have since complaining passes my telephone number on to the collection agency without my permission. I am now receiving texts from them. Help, I don’t know what to do. I have heard that I should not contact the collection agency but try to only deal with the gym. Surely a bill of such a high amount is completely over the top for canceling a month by month rolling contract which is what I believed I had. I wasn’t given any paperwork that I remember and I have no e-mails from when I joined. I’m a bit lost
Hi I cancelled my car insurance ,gave them a months notice as I sold the car I received a legal notice say I owe £258.93 this as been going on since September 2014 I’ve wrote to them also emailed them still not got any were is there anything I can do.
My gym 12 month contract finished and its renewed automatically which I was not aware they called me and said that my fee was not paid then only I knew that it was automatically renewed I said it was finished last month they said I have to inform with one month notice and have to pay this month which I was not used is any right to stop pay the month wich I was not used thanks
Hi Catrioa
Found this information so helpful I have had problems with a contract i stupidly signed between myself and a private clinic called the hospital Group. Think they tick all the boxes above and this has confirmed how unfair there term’s are and it’s going to help me write a great letter to them so thankyou good stuff to know maria
Can i get my wedding venue deposit back?
We paid £1,000 in March 2015 for our wedding in September 2016. However the venue have not responded to my calls or emails since September 2015. They sent me an invoice a week last Wednesday asking for money, but not responding to my queries. I have called and emailed daily since with no response – until today.
In the past 2 month all reviews of the venue have been negative (this wasn’t the case before). I looked on tripadvisor and facebook and google and the recent reviews are bad. Really bad. Just been on facebook and they’ve deleted all the bad reviews which consisted of – guests turning up to find the venue in darkness; running out of booze before the evening guests arrive so staff went to get tins from the supermarket to sell; the food not coming out together and the selected choices not being given; no hot water and heating; the rooms being dirty; the kitchen having urine running through it; cake being thrown away etc – there are too many to mention.
We have lost faith in the venue and would like to book another, however do not want to lose our £1000 deposit. The contract states this is non refundable, however we didn’t sign the contract.
where do stand? can anyone help?
Thank you
Donna
Hi,
I’m not sure if you can help me, but I’m on the committee of a charity run nursery. We invested in an imployment law firm to assist us in setting up new contracts. We made it clear we were signing up for just one year, however failed to read the small print that states we need to give 6 months notice or they will charge for another year. They did not send us a reminder at 6 months and now insist we pay for the next year. Can they make us pay for the second year? As a charity it is something we can’t afford. We just need to know if we can fight this? Thank you for your help Catherine.
Regus Ballance Sheffield, UK – Unbelievable experience
I would warn anyone about the issues we’ve had with Regus in Sheffield.
We we’re initially given promises by the sales rep prior to signing the agreement which were purely to meet monthly sales targets within the building. We we’re assured of a monthly cost but beware there are many hidden costs which were only disclosed once the agreement was signed. We we’re told by the sales rep our monthly bill would be in the region of £750.00 but with hidden extras such as additional data charges the monthly cost was £1100.00 – £1200.00. Subsequently that sales person left the business.
We also had tenants in the office next door who for 5 months played music full volume and shouted to each other during sales exercises for 2 hours every morning. We made several complaints but nothing was done about this. Regus are clearly incapable of enforcing their house rules. Initially before we signed up we asked on 2 occasions if we could view the office in the morning but we were told that it was only possible in the afternoon which was clearly down to the noise every morning.
There were more than 5 incidents of people flying round the corridors on electric segway boards carrying hot drinks. Again little was done about this. On one incident we had clients nearly hit by someone flying down the corridor as they stepped out of the office door.
The office cleaners come in to clean in the morning between 9-10 which disrupts the office during this time.
The front desk receptionist failed to acknowledge our company existed in the building even though he had been told on many occasions. Even to the point of arguing with clients that our company was not in the building.
Very poor customer service and lack of response to emails was very frustrating.
Also beware of the auto-renewal as this caught us out. The reminder email comes through 3 months before the lease ends and then auto-renews for the same period again. Unfortunately the auto-renewal email had gone into a junk email folder and as a result we had missed it and were locked in for a further 6 months even though we have left the premises.
We asked Regus for a show of good faith to see if there was any movement on the period of auto-renewal but there was nothing even after everything we had endured during this period.
Being at the Regus office has affected relationships with our clients due to the various incidents and has affected productivity within the company.
An extremely bad service overall.
Hi was wondering if someone can help me we went last year to sign up for gym and on the day the systems where down so we was told that they would sort it on Monday any how we wasn’t informed that the membership has started also we did not use it at all once but now we have a bill of £800+ each we didn’t go to the gym as my father passed away so to be fair my father was more imporant at the time i have contacted the gym but they not having any of it who do i contact to make a complaint ect?
I ordered a log cabin from Dunster House, which I did via a telephone call to ensure all details were understood. I explicitly asked about groundwork, and was told “it would be fine” as it was being constructed over brick-paving. The total cost, inclusive of installation was £7500. Upon installation day, the installers took 10 minutes to tell me they would need additional equipment to get the cabin level, as the brickwork had a gradual slope that exceeded their tolerances. For this I would incur additional costs of £1200, need to arrange a different installation date and pay a £700 fee for the “lost day”. They pointed me to the contract which states this fee is payable if the ground is not suitable. I believe not only is the contract penalty unfair and placed all risk on me, but no site visit was offered and as I had discussed groundwork already, I had not even considered cancellation a possibility. What are my rights?
I joined fits pace without reading the contract and after 3 months I moved houses so cancel fits pace from my bank. Now the Crs from garland group are demanding I pay £272 for cancellation and arrears fees for the use of the gym. I need help, am a full time student on bursary , I find this to be ridiculous.
Hello,
I made the mistake of signing up to a Gourmet society card when it was on an very reasonably offer but never used it.
I got a lot of general emails from them, which I never read as I didn’t use the card, and am surprised I didn’t unsubscribe to as they were filling up my mailing box.
So, not surprisingly I missed the one saying that it was due to be automatically renewed and that if I didn’t cancel before hand using the link on their email I could not get a refund. I only found out about this after I called them and the women on the phone was being really round about and it slowly became clear that she was not going to offer me a refund.
I have sent two emails, one before this phone call and one after asking for my membership to be cancelled. The one after the call letting them know how livid I was at paying £40 for a service to be renewed that I have never used and that they won’t refund me for.
I don’t understand why I should have to call them again to find out if this has been cancelled as my emails are not being replied to and I haven’t got confirmation since the phone call that my membership is being cancelled. How is this allowable?
I was overchargged by 02 for service’s they didn’t supply. I contacted them.02 agreed to refund but they didn’t refund what I was charged. Overall I spend 15 hour’s on the phone with in a period of 2 month’s. 02 have refused to refund full overchargged payment and I have contacted ofcom who have asked me to get my complaint in written from 02 .I have made 9 complaint but never got a single written response. I told them to terminate my contract as they are in breach of contract which they stated I have to pay full cancellation changes. I told them they have breached the contract. Still fighting without any responses from 02.
I was sold a rolling contract with virgin over the phone and assured that after 2-3 months of clear payments I would be entitled to apply for the phone I wanted in the first place. Now when the 3 months of payments is past they tell Me I am not entitled to any new phone for at least 6 months. Do I have any recourse in this case as it is fraudulent salesmanship in My oppinion
Hi. My daughter was recently involved in a car accident which was 100% not her fault (proved). She called an accident injury firm that and wavered her 14 day cooling off period.
They have 2 days later sent her lots of mind boggling paperwork and she is very upset (not needed right now). And wants to cancel the claim.
Can she do this?
1. Where does she stand?
2. How much is she liable to pay for work done?
Any advice would be greatly appreciated
Thank you
She is at her wits end and in a state of panic x
Dear Sir or Madam,
I am interested if this act applies to renewals? I am in the process of renewing a parking permit.
The form does not provide anywhere to detail the expiry of the previous permit. I have explicitly noted the date the new permit should start on. Am I in my rights to claim if they do not adhere to my request?
Many thanks
G Kinsman PhD
I joined a caravan club and they took my 15quid from my account saying ita a rolling contract but I never knew they could do this they took it from my paypal and ive tried to get it back but to no avail. They said its rolling so nothing I can do about it. So rude to me as well. It seems unfair should i ask them for a copy of their terms and conditions thank tou
I need advise on a mobile phone contract I got from a ee shop in Nottingham in february which ime not happy about. I wish to cancel the contract but the manager at the shop told me that once signed it is legally binding for the full tenure. I am not happy with the service I have received from the said company because over overcharging and broken verbal promises. What is my position on this?
I booked a hotel room at the White Hart Hotel in Lincoln for the popular Steampunk Weekend at the August Bank Holiday. It was a late booking as most hotels are booked a year in advance for this event, and I was still recovering from a heart attack. I discovered that it was a no refund booking on receiving the email conformation but as I had no intention of cancelling , I had no problem. A couple of days later, I had a serious ‘episode’ of my heart condition needing a hospital stay and was too unwell to consider attending the event. I cancelled and found out that the hotel has already taken the full amount of the room on the day of booking. I have never experienced this before and I had intended paying cash at the hotel on my stay…my joint account could not cope with this amount being removed. I contacted Booking.com to see if they could intercede with the hotel to make an exception due to the circumstance and knowing all hotel rooms in Lincoln were scarce to fully booked. They did their best but the manager was intransigent. I tried too personally but got the same reaction…..rules were rules. What is so vexing is that they will rebook the room and get paid twice for it, which cannot be right. Also what poor customer relations. The White Hart benefits greatly from the arrival of over 4000 steampunks over the long weekend plus the many thousands more tourists who arrive to enjoy the spectacle and entertainments on offer. Clearly they are not interested in giving customers a hospitable welcome