Commentary

126 Guidelines for application of ‘reasonableness’ test

COMMERCIAL CONTRACTS vol 7(2)
| Commentary

126 Guidelines for application of ‘reasonableness’ test

| Commentary

2: GUIDELINES FOR APPLICATION OF THE UNFAIR CONTRACT TERMS ACT 1977

126 Guidelines for application of ‘reasonableness’ test

For the purposes of ascertaining whether a term satisfies the requirement of reasonableness, any of the following factors which appear to be relevant may be taken into account:

  1. 126.1

        the strength of the bargaining positions of the parties relative to each other, taking into account (among other things) alternative means by which the customer’s requirements could have been met;

  2. 126.2

        whether the customer received an inducement to agree to the term, or in accepting it had an opportunity of entering into a similar

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