Wednesday 5 September 2012

THE UNFAIR TERMS IN CONSUMER CONTRACTS REGULATIONS 1999 APPLIES TO TENANCIES

The above mentioned regulations apply to unfair terms in contracts between a seller or supplier and a consumer

A standard term (that is one that has not been individually negotiated) in such a contract will be regarded as unfair "if, contrary to the requirements of good faith, it causes a significant imbalance in the parties’ rights and obligations to the detriment of the consumer".

In the case of R (on the application of Khatun) v Newham London Borough Council [2005] EWCA Civ 55; [2005] QB 37. A local authority's policy required homeless people to accept or decline accommodation offered under Housing Act 1996 section 193(2) without being able to view the property in advance.

One aspect of the hearing that the  Court considered was whether expecting homeless people to accept or decline accommodation offered without being able to view such accommodation  in advance was considered to breach of The Unfair Terms in Consumer Contracts Regulations 1999


3 questions were considered:

Did the Unfair Terms in Consumer Contracts Regulations 1999 apply to contracts relating to land (i.e. contracts for the disposal of an interest in or rights of occupation over land)?

Did the Unfair Terms in Consumer Contracts Regulations 1999 apply to public authorities such as the council in this case?

Was the council a "seller or supplier" and were the claimants "consumers" within the meaning of the Regulations?


The Court of Appeal decided that the  Unfair Terms in Consumer Contracts Regulations 1999 did apply to contracts relating to land.

It decided that the main point of the Unfair Terms in Consumer Contracts Regulations 1999 was to provide a high level of consumer protection.

As the purchase or lease of a home was a key event in peoples’ lives, it was expected that purchases and leases would fall within the scope of the  Unfair Terms in Consumer Contracts Regulations 1999

The court  also decided that the  Unfair Terms in Consumer Contracts Regulations 1999 did apply to public authorities such as councils, and that the council was a "seller or supplier" and the tenants were "consumers"  under the Unfair Terms in Consumer Contracts Regulations 1999.

Therefore the homeless people offered property without being able to view it prior to accepting or declining were subject to a significant imbalance in the parties’ rights and obligations to the detriment of them as  consumers,


 .

No comments:

Post a Comment