Are You a Small Business and Need Help Challenging Unreasonable or Unfair Contract Terms You’ve Found Yourselves Bound By?

Perhaps you are so worried about the draconian terms you have contracted on that you want to investigate getting out of the contract entirely?

Smaller businesses can lack bargaining power against larger businesses, making them more likely to sign up to terms that they feel are unreasonable or commercially unfair. Generally, the law respects freedom of contract between businesses, whatever their size, so businesses are free to enter into whatever contracts they see fit. However, there are a few arguments that a business could explore to invalidate the effect of a term that appears unfair. Examples include:

Has the relevant clause been incorporated into the contract?

Perhaps a particular clause is contained in an unsigned document? And has never been brought to your attention?

Is the clause simply UNFAIR?

If it limits or excludes liability, the Unfair Contract Terms Act 1977 may make the clause void or make it enforceable only if it passes the reasonableness test.

Are you contractually bound to allow the other business to perform in a way that is substantially different to that which is reasonably expected when the contact was made?

Does your contract contain clauses that set onerous consequences for breach of the contract? Often referred to as Penalty Clauses.

Has the interest clause applicable on late payment set interest unfairly low?

If you find yourselves in a dispute over the contract or have any queries or concerns regarding anything mentioned in this article, please contact either RACHEL CRONIN or LAURA READ and MARSHALL HATCHICK SOLICITORS LLP in Woodbridge on 01394 388411.