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  • UCT 07 Excessive Charges

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    Excessive charges or disproportionate sanctions in a contract are likely to be unfair. Terms that allow imposing disproportionately high charges on customers for a breach of contract or disproportionate cancellation charges if a customer ends a contract early may be considered unfair. Other over-severe enforcement methods that could violate a customer's privacy or property rights may also be unfair. Fair terms clearly explain charges payable when a customer is at fault and how they are determined, set reasonable amounts that consider actual losses, and avoid legal jargon. Terms that may be unfair include those that allow the business to arbitrarily determine charges, require full payment if a customer cancels without considering savings to the business, or threaten sanctions that cannot legally be imposed.

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    Excessive charges or disproportionate sanctions in a contract are likely to be unfair. Terms that allow imposing disproportionately high charges on customers for a breach of contract or disproportionate cancellation charges if a customer ends a contract early may be considered unfair. Other over-severe enforcement methods that could violate a customer's privacy or property rights may also be unfair. Fair terms clearly explain charges payable when a customer is at fault and how they are determined, set reasonable amounts that consider actual losses, and avoid legal jargon. Terms that may be unfair include those that allow the business to arbitrarily determine charges, require full payment if a customer cancels without considering savings to the business, or threaten sanctions that cannot legally be imposed.

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    © All Rights Reserved
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    6 views2 pages

    UCT 07 Excessive Charges

    Uploaded by

    Nopety
    Excessive charges or disproportionate sanctions in a contract are likely to be unfair. Terms that allow imposing disproportionately high charges on customers for a breach of contract or disproportionate cancellation charges if a customer ends a contract early may be considered unfair. Other over-severe enforcement methods that could violate a customer's privacy or property rights may also be unfair. Fair terms clearly explain charges payable when a customer is at fault and how they are determined, set reasonable amounts that consider actual losses, and avoid legal jargon. Terms that may be unfair include those that allow the business to arbitrarily determine charges, require full payment if a customer cancels without considering savings to the business, or threaten sanctions that cannot legally be imposed.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    Excessive charges

    disproportionate sanctions
    At a glance guide

    Terms that allow you to impose Another kind of financial


    disproportionately high charges sanction that could be unfair is
    on your customers for breach of imposing a disproportionate
    contract are likely to be unfair. cancellation charge on your
    customer if they decide to
    There is unlikely to be any pull out of the contract early.
    objection to terms which, in
    plain language, make your

    SA
    customers pay for the financial

    NC
    losses they have directly caused

    TIO
    where they are at fault.

    N
    Other kinds of over-severe sanctions may also be unfair. For example,
    terms that allow you to use an enforcement method which could lead
    to a violation of your customer’s privacy or property rights.

    TIPS FOR WRITING FAIR TERMS


    For example, your terms are more likely to be fair if:

    !
    !
    !
    You clearly explain how The amounts you ask for are Words like “indemnify” and
    charges, which are payable reasonable. For example, “indemnity” are avoided –
    when your customer is at consider your actual losses. these are legal jargon and
    fault, are determined. customers are unlikely to
    properly understand them.

    Be clear up front about any CHARGES


    your customer has to pay if they are
    at fault and how these ARE DETERMINED
    TERMS THAT may BE UNFAIR INCLUDE

    000

    Allowing the business to Making a customer pay Threatening sanctions


    decide how much is charged in full if they cancel early which can not, in reality,
    when the customer is in without taking into account be imposed in the way
    breach of the contract. any savings to you for not indicated.
    having to complete the
    EXAMPLE contract or being able to EXAMPLE
    sell to another customer.
    Failure to comply with the In default of payment
    terms of this agreement we may enter the premises
    may incur a charge, EXAMPLE at any time to repossess
    which will be determined If you cancel this contract the goods.
    by the Company. early, you must still continue
    to make all outstanding
    payments to us as per
    our agreement.

    Having clear and fair terms in


    your contract will
    save you time
    h elp prevent disputes
    and reputational damage
    p rotect your business if
    something goes wrong

    Want to know more


    Introductory guide – click here for an overview of some of the key things you need to know
    about unfair terms.
    Individual guides – see our other guides on contract terms that may be unfair.

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