Unfair contract terms act 1977

Reference no: EM13969585

1. Critically evaluate the similarities and differences between the protection provided by the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations 1999.

2. Fred is a newsagent in Fordsworth. A salesman from Tills Ltd calls and attempts to persuade him to take out a hire agreement on a new electronic till with stock-control facilities. The agreement is for a period of three years. Knowing that the machine is likely to become dated fairly quickly, Fred asks what will happen in such a case. The salesman replies that his company will update the machine every 12 months at a nom- inal charge; Fred signs the hire agreement which does not contain this term. Fifteen months later Fred learns that Tills has launched a new electronic till which is much more reliable and easier to use than the model he has hired. He contacts Tills Ltd which tells him he is not entitled to the new model but that as a gesture of goodwill the company will replace his current till for £500 and a 20 per cent increase in his rental. Fred cannot afford this and finds he can get a new electronic till with the features he requires from another company much more cheaply than his current rental. He wishes to withdraw from his agreement with Tills Ltd.

(a) Advise Fred.

(b) What difference, if any, would it make to your answer if the salesman's statement had been included in the hire agreement?

Reference no: EM13969585

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