Thursday, 18 April 2013

Unfair contract terms

I do not think that a web operator is able to change the terms of use of website without giving users adequate notice as this action result in an unfair contract term according to the unfair contracts law. First of all, a significant imbalance in the parties’ right arises under the contract. The website user was deprived of the right of knowing changed terms and the right of rejection, thereby an unexpected credit card charge automatically to operator. That also meets the second criteria of determing the unfair contract term as it would cause detriment to a party if it were to be applied. Therefore, a party cannot unilaterally change the terms of a contract before obtain the other party’s consent. However, this issue could have been rapidly avoided by website operator with some practical movements, such as send a notice by mail or call, although, it could increase extra work for website operator to some extend. Finally, In terms of the third fact that that unnoticed term is not reasonably necessary to protect the legitimate business interests of the website operator who would be advantaged by the term. In a word, the term will be void when that proved to be unfair, which caused by inadequate notice of the change.

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