Unfair Contract Terms : Variation Clauses
Unfair Contract Terms
What is a fair contract term change? Fair Variation Clauses
The FSA document 'Fairness of Terms in Consumer Contracts' sets out their views on how firms may approach drafting fair variation clauses in or changing contract terms in standard consumer contracts.
Unfair Contract Terms, as an introduction, an outline of variation clauses is given here.
Variation Clauses - the power to change contract terms
Variation clauses gives a firm power to impose a level of change, which the client has not explicitly agreed to in advance and which does not require their agreement at the time any change is made.
Balance of power with you
Unfair Contract Terms, variation clauses directly affect the balance of power between the firm and the client with the risk that the power weighs too far in favour of the firm. The FSA will look at this closely.
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