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I’m inclined to recall that there was something or other in one of the statutory non exhaustive lists of example unfair contract terms that says this, but I can’t find the specific one that I’m thinking of at the moment.

Is this a correct application of the unfair contract terms laws?

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  • It’s been suggested that the applicable doctrine in this scenario is known as contra proferentum.
    – TylerDurden
    Jan 6, 2023 at 19:41

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No

The concept of an “unfair” contract or term does not exist at common law - you are free to enter, and be bound by, whatever contracts you like whether they are objectively fair or not.

“Unfair” is therefore a creature of statute and what is “unfair” and what happens if it is are determined by statute.

In England and Wales, there are 3 pieces of legislation that deal with unfair terms:

  • The Unfair Contracts Terms Act 1977 primarily limits disclaimers of liability which renders excessive terms either unenforceable or subject to reasonableness limitations.
  • Unfair Terms in Consumer Contracts Regulations 1999 covers any unfair terms in a consumer contract that do not involve the "definition of the main subject matter of the contract", or terms which relate to "price or remuneration" of the thing sold. A term is unfair “ if it is not one that is individually negotiated, and if contrary to good faith it causes a significant imbalance in the rights and obligations of the parties.” An unfair term is not binding on the consumer.
  • Consumer Protection from Unfair Trading Regulations 2008 covers B2C relationships in general and is not specifically about contract terms.
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You didn't mention any country, any jurisdiction.

In general, your country may have laws protecting consumers, and these laws may claim that terms in a contract are unfair and therefore void. Another rule is that usually if a contract contains unclear or contradictory terms, that will be held against the ones writing the contract, and that is usually the business, and not the consumer. (If you are a consumer hiring a builder, and you insist on writing the contract, that may cause you problems because unclear terms will be decided against you).

Apart from that, terms are not unfair just because you are a consumer and disagree with them. They must actually be unfair.

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    The question is tagged England-and-Wales.
    – TylerDurden
    Jan 6, 2023 at 19:40

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