What does it mean when a contract term is unclear, unlawful or misleading?
A contractual term can be considered unfair – prohibited – if it contradicts mandatory consumer legislation, or if it results in such a significant disadvantage for you that there is no reasonable balance between the company’s and your rights. It can also be considered unfair if it is misleading or unclearly formulated so that you are misled about the meaning or about your rights.
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A contract term is unfair if it violates the law, is misleading, unclear, or creates an imbalance between your and the company’s rights. You have the right to get your money back if the company tries to charge more than what is stated in the contract without your approval. The Consumer Agency ensures that companies change such terms if they are unfair.
Contract terms that may be considered unfair to you as a consumer can include:
- Contract terms that deviate from mandatory legislation
- Contract terms that deviate from legislation that is not mandatory, but are unbalanced to your disadvantage as a consumer
- Contract terms that are misleading or unclearly formulated.
- If the company has a contract term that means you have to pay more for the service than the price stated in the contract, this does not apply unless you have explicitly approved the term. You then have the right to get back what has been paid.
An unclear contract term is a condition in a contract that is ambiguous, unclear, or open to multiple interpretations. This may be due to vague wording, missing important details, or different parties interpreting the term in different ways. For example:
- The rule of ambiguity: If a term is unclear, it should be interpreted in favor of the weaker party – the consumer – in consumer contracts.
- The purpose of the contract: The term is interpreted based on what appears to be the overall purpose of the contract.
- The parties’ intentions: An attempt is made to find out what the parties actually intended when entering into the contract.