Guide to Using the RIBA Professional Services Contracts 2018 - Other - Page 28
Contract terms
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The Consumer Rights Act 2015 also seeks to replace and add to the current
rules on unfair terms in consumer contracts under the Unfair Terms in Consumer
Contracts Regulations 1999 (UTCCR) in respect of consumer contracts. Unfair
terms in a consumer contract are not legally binding on the consumer, thus
it is important that the terms within professional services and other types of
consumer contracts are fair and reasonable. An assessment of whether a term is
unfair continues to be based on whether the relevant term causes a significant
imbalance in the rights and obligations of the parties under the contract, to the
detriment of the consumer.
Whether a term is fair (or unfair) is determined by considering:
• the nature of the subject matter of the contract
• reference to all the circumstances existing when the term was agreed
• to all of the other terms of the contract or of any other contract on which it
depends.
The Consumer Rights Act 2015 applies to consumer notices (whether contractual/
non-contractual, oral or written) as well as typical consumer contracts.
Some examples of terms that may be unfair under the Consumer Rights Act 2015
include:
•
•
•
•
fees and charges hidden in the small print
something that tries to limit your legal rights
disproportionate default charges
excessive early termination charges.
If the Client is a married couple or joint residential occupiers, all the Client parties
are consumers, but the Client should preferably identify one of their number as
their representative with full authority to act on behalf of the parties and to sign the
Agreement.
The domestic client’s right to cancel
The RIBA Domestic Professional Services Contract 2018 includes the right for the
Client to cancel the appointment within 14 days of signing under the Consumer
Contracts (Information, Cancellation and Additional Charges) Regulations 2013. This
extends the right of a consumer client to a cooling-off period for the cancellation
of a consumer contract where the Contract was made in or following a meeting
between the Architect/Consultant and the Client which may have taken place in the
consumer’s home, place of work or the home of another individual.
In these circumstances, the Architect/Consultant must give written notice to the
consumer of their right to cancel the Contract within the cooling-off period. The
cooling-off period starts on the day the Consumer receives the notice of their right
to cancel, which should be with the appointment document. In any written Contract
such as the RIBA Domestic Professional Services Contract 2018, the cancellation
notice must be set out in the Contract and must provide specific information
required by the Regulations. The Consumer must also be provided with a detachable
document which they may, but do not have to, use to cancel the Contract within
the cooling-off period. This document must be set out in the form prescribed by
the Regulations.
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