Not fair? Not binding
A client has read the terms and conditions and has signed, so it must be legally binding, right? Well actually, not necessarily, particularly if it contains unfair terms.
On 24 October 2016, the Competition and Markets Authority (“CMA”) published worrying results from their research which showed that 54% of UK businesses do not have a full grasp on unfair contract terms which affect their customers. 18% had never heard of them and 75% were not familiar with the Consumer Rights Act 2015, which sets out the rules.
To increase awareness, the CMA then published a series of short guides, animated videos and even a quiz for businesses to test and improve their knowledge of contract rules. The range of topics covered includes:
• Why fair terms and conditions matter
• Changing the terms of an agreement
• Cancelling an agreement
• Deposits, advance payments and cancellation charges
• Subscriptions and automatic rollovers
• When a customer breaks an agreement
• Responsibility when things go wrong
Although brief, these are good starting points for businesses to consider. It is vital to ensure that your contracts and terms are fair or they may not be legally binding and therefore not protect your business. To ensure your business is not exposed, contact David Wisbey on 01245 453817 or alternatively, you can email email@example.com