A recent High Court decision has underlined the importance of getting your consumer contracts right.
It is important that when drafting a contract for services with a consumer that:
1) each provision is fair
2) you balance the needs of the business with fairness.
The court, when assessing fairness, will take into account the type of services being provided under the contract and consider all circumstances around the conclusion of the contract, but the following should always be considered in relation to the length of, and exists from, the contract.
Some food for thought:
Minimum contract terms: avoid committing the customer to a minimum term that is excessive
Automatic renewal terms: clearly communicate how they can get out of the contract
Early termination charges: make these clear and proportionate
Notice provisions: make it clear who the customer serves notice on and how
If the relevant sections of your contracts don’t fit the above criteria or you are worried that other conditions may not be considered fair, I would be happy to discuss these issues or arrange a review of your contracts.
If you wish to discuss the contents of this article or have further concerns about your contracts,
please contact David Miller on david.miller@flintbishop.co.uk or 01332 226 466.
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