3 Real-Life Examples of Unfair Contract Terms in the UK (And How They Could Affect You)
Every day, people sign contracts for broadband, gym memberships, rental agreements, or freelance work. Most of us don’t read every word, especially if the terms are long, written in small print, or packed with complex legal language. But hidden inside those clauses can be unfair contract terms that give one party far more power than the other.
In the UK, such clauses can be challenged under laws like the Unfair Contract Terms Act 1977 (UCTA) and the Consumer Rights Act 2015 even if you already signed the agreement.
Here are three practical, real-life examples so you can spot trouble before it happens.
Example 1: Automatic Renewal Without Notice
The Situation:
Maria signed a 12 month broadband contract. In tiny print, there was a clause saying the agreement would renew automatically for another year unless she cancelled in writing 30 days before the end date. She only found out when she received an invoice for the new term.
Why It’s Unfair:
Automatic renewal clauses can be legal, but if they are hidden in the small print or not clearly explained, they may be considered unfair terms under UK law. The Competition and Markets Authority (CMA) has flagged such practices as problematic, especially when the customer is not given reasonable notice.
Lesson:
Always check for “renewal” or “extension” clauses and ask for clear notice periods in writing.
Example 2: Excessive Cancellation Fees
The Situation:
James joined a local gym with a “cancel anytime” promise. When he moved to another city, the gym demanded three months’ fees as a “termination charge” even though he gave 30 days’ notice.
Why It’s Unfair:
Under the Consumer Rights Act 2015, terms that impose disproportionately high cancellation fees may be unenforceable. Businesses must show that such charges are a fair reflection of actual losses, not a penalty.
Lesson:
If a cancellation fee seems too high, it may not be legally binding. Keep all written promises from sales reps, as they can support your case.
Example 3: One-Sided Liability Clauses
The Situation:
Anna, a freelance graphic designer, took on a project for a marketing agency. The contract stated the agency had no liability for late payment, but Anna would face penalties if she missed deadlines. When the agency delayed payment for six months, they claimed the contract allowed it.
Why It’s Unfair:
Clauses that give one party unlimited rights while limiting the other’s legal remedies may be void under UCTA and Consumer Rights Act. Courts can strike out such terms, even in business-to-business contracts, if there’s a clear imbalance of bargaining power.
Lesson:
Always review liability and payment terms before signing. If they seem one-sided, negotiate or seek legal advice.
Protect Yourself from Unfair Contract Terms
If you suspect a contract contains unfair terms, whether it’s an automatic renewal, excessive penalty fee, or liability imbalance you have the right to challenge it.
For an in-depth guide on spotting and dealing with these issues, see this resource:
How to Protect Your Business from Unfair Contract Terms in the UK
Knowing your rights can save you time, money, and stress and prevent you from being trapped in a contract that works against you.
Notice: All names in these examples have been changed to protect confidentiality.
Need help? At Express Law Solutions, we review, draft, and negotiate contracts to ensure they’re fair, clear, and enforceable.
Contact Us: +44 7482 928014 | expresslawsolutions@gmail.com or Book A Conslultation
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