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Office of Fair Trading v Foxtons Ltd [electronic resource]

Language: English Publication details: 2009Subject(s): Online resources: Summary: [2009] EWCA Civ 288, 2 April 2009. Terms in written contracts may not be enforceable if they are unfair to consumers. The Office of Fair Trading (OFT) appealed a decision which would have prevented it seeking a declaration that the respondent estate agent (F) could use contract terms, considered unfair by the OFT, in its letting agreements with landlords. The terms required landlords to pay the letting agent a commission if a tenant remains in a property, even if the agent no longer manages the property. F also required landlords to pay these sums after they have sold the property, even if the letting agent played no part in the sale. F cross-appealed, arguing the terms were not unfair and that the court had no power to grant such declarations. Held: appeal allowed, cross-appeal dismissed. The OFT could take enforcement action under the Unfair Terms in Consumer Contracts Regulations 1999 to protect consumers, and to try and enforce unfair contract terms. Article 7 of the Council Directive 93/13 applied, as did Director General of Fair Trading v First National Bank Plc. Whether or not the terms in any of F's contracts themselves are unfair will be the subject of a further substantive hearing.
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Law report Virtual Online ONLINE PUBLICATION (Browse shelf(Opens below)) 1 Available 147161-1001

[2009] EWCA Civ 288, 2 April 2009. Terms in written contracts may not be enforceable if they are unfair to consumers. The Office of Fair Trading (OFT) appealed a decision which would have prevented it seeking a declaration that the respondent estate agent (F) could use contract terms, considered unfair by the OFT, in its letting agreements with landlords. The terms required landlords to pay the letting agent a commission if a tenant remains in a property, even if the agent no longer manages the property. F also required landlords to pay these sums after they have sold the property, even if the letting agent played no part in the sale. F cross-appealed, arguing the terms were not unfair and that the court had no power to grant such declarations. Held: appeal allowed, cross-appeal dismissed. The OFT could take enforcement action under the Unfair Terms in Consumer Contracts Regulations 1999 to protect consumers, and to try and enforce unfair contract terms. Article 7 of the Council Directive 93/13 applied, as did Director General of Fair Trading v First National Bank Plc. Whether or not the terms in any of F's contracts themselves are unfair will be the subject of a further substantive hearing.