Commentary

156.2 Restrictions on the drafting of standard terms

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

156.2 Restrictions on the drafting of standard terms

| Commentary

156.2 Restrictions on the drafting of standard terms

There are three chief restrictions on a client business’s freedom to include whatever terms it wishes in its standard terms. To start with, the client will be restricted by what its suppliers and customers are prepared to accept. This will of course depend largely upon the client’s bargaining power relative to those other parties. A second, related restriction is to do with the client’s reputation in the market place. For instance, where the client is in the business of selling high quality designer goods, it may damage its brand image if it becomes widely known that its standard terms attempt to exclude all responsibility for the quality of the products sold.

The third restriction on the client’s freedom is the Unfair Contract Terms Act 1977

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