Factors relevant to the assessment of the unfairness or unreasonableness of contract terms: some guidance from the German law on standard contract terms (2015) 26 Stellenbosch Law Review 85-109.

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2015-05-01

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Stellenbosch Law Review

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Juta & Co

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University of Cape Town

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This article considers factors relevant to the unfairness or unreasonableness of contract terms. It focuses on factors that have crystallised in German case law and academic commentaries on § 307(1) of the German Civil Code, which essentially provides that “provisions in standard business terms are ineffective if contrary to the requirement of good faith, they unreasonably disadvantage the other party to the contract with the user.” The German case law and academic commentary are useful to consumer contracts generally as most terms in consumer contracts are not negotiated anyway. The article also argues for improvement of s 52 of the South African Consumer Protection Act, which lists some factors relevant to the unfairness enquiry.
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