An unfair contract term, under Part 2 of the Consumer Rights Act 2015, is a term in a contract between a business and a consumer that, "contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations under the contract to the detriment of the consumer." An unfair term "is not binding on the consumer" (section 62), though the consumer can still rely on it if they choose.
How the rules work
Part 2 applies to a contract between a trader and a consumer, meaning an individual acting "wholly or mainly outside" their trade or business (sections 2(3), 61 and 76). If you store mainly for your business, these rules don't cover your agreement.
Fairness is judged by the nature of the service, the circumstances when the term was agreed, and the contract's other terms (section 62(5)). Two things can't be challenged as unfair: the main subject matter, and whether the price is good value for what you get. That protection only holds if those terms are "transparent and prominent" (section 64), and every written term must be in "plain and intelligible language" and legible (sections 64(3) and 68).
Schedule 2 lists examples of terms that may be unfair, such as one requiring a consumer who fails to meet their obligations "to pay a disproportionately high sum in compensation" (paragraph 6).
At Wigwam
Our terms are published in full on our terms and conditions page. If you're a consumer, the fairness test applies to all of them. The ones customers most often ask about are:
- the limit on our liability: for loss of or damage to goods caused by our negligence or breach of contract, "Our liability will be limited to the sum of £100 in total" (clause 30(b)), which is why insuring your goods is a condition (clause 31), through our contents protection or your own policy, so budget for that cost;
- charges when payments go wrong: "a Late Payment Fee each time a payment is late or cancelled" and collection costs (clauses 5(b) and 5(c));
- the right to sell goods for unpaid fees, after written notice (clauses 6 and 8 to 10; see lien).
Naming them here isn't a view on whether any of them is fair; that's for a court to decide. Clause 30 also says we don't exclude or limit liability for death or personal injury resulting from our negligence, which section 65 bars in any consumer contract. And clause 46(h) says any provision that "is or becomes invalid, unlawful or unenforceable to any extent, it shall be treated as deleted", with the rest of the agreement standing.
If you think a term is unfair, raise it with us first. The Citizens Advice consumer helpline is 0808 223 1133 (Monday to Friday, 9am to 5pm).
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