The Unfair Contract Terms Act 1977, The Unfair Contract Terms in Contracts Regulations and The EC Directive on Unfair Contract terms were passed in the United Kingdom to limit the exposure that consumers may have in booking contracts. 

 

a. Clearly interpret and outline the meaning and intention behind each Act

 

b. Set out, with reference to relevant sections of each Act, explaining clearly, how they apply in respect of the consumer to safeguard contractual arrangements. 

 

c. State what recourse, if any, is available to the consumer in relation to the use of the said Acts in contractual relations

 

The Unfair Contract Terms Act 1977 is a statute which imposes limits on the extent to which

liability for breach of contract, negligence or other breaches of duty can be avoided by means of

contractual provisions such as exclusion clauses. The Unfair Contract Terms in Contracts

Regulations is a statutory instrument which works to render ineffective terms that benefit seller

or suppliers against the interests of consumers. The EC Directive on Unfair Contract terms is a

directive that protects consumers in the EU from unfair terms and conditions which might be

included in a standard contract for goods and services they purchase. It introduces the notion of

'good faith' to avoid any significant imbalance in mutual rights and obligations.

Step-by-step explanation

Nearly all business-to-consumer contract terms and notices are subject to the Unfair Contract

Terms Act; whether or not they are in writing, and whether or not there has been any individual

negotiation between the trader and the consumer.

The Unfair Contract Terms in Contracts Regulations extends the scope of terms which can be

rendered ineffective; especially when dealing with unfair terms that do not constitute exemption

clauses. Under Part 8, the OFT and other enforcers can seek enforcement orders against

businesses that breach UK laws giving effect to specified EC Directives - including the Unfair

Contract Terms Directive, where there is a threat of harm to the collective interests of

consumers. All the illustrative terms listed in Schedule 2 either protect the supplier from certain

sorts of claim in law which the consumer might otherwise make, or give rights against the

consumer that the supplier would not otherwise enjoy.

Due to the EC Directive on Unfair Contract terms, there are specificities in the Member States

that market participants and legal practitioners will have to take into account. Such specificities

may relate to a broader scope of the national rules transposing the UCTD, or may comprise in

more detailed or stricter rules concerning the unfairness of contract terms. Examples consist of a

black list of contract terms that are always considered as unfair, lists of contract terms which are

supposed to be unfair, the assessment also of contract terms that have been negotiated

individually, the assessment of the unfairness of contract terms defining the main subject-matter

or of the adequacy of the price or remuneration even where such terms are transparent. It also

applies where the national transposition does not require that the imbalance in the rights and

obligations of the parties is noteworthy or that that the unevenness in the rights and obligations is

contrary to the requirements of good faith.

The recourse that is available to the consumer in relation to the use of the said Acts in contractual

relations may comprise of money damages, restitution, rescission, reformation and specific

Performance.