Law Commission plans to review rules on unfair contract terms should exclude contractual arrangements in the wholesale markets, according to a recent consultation response from the ACT.
Echoing the comments already submitted by the ACT on the Law Commission’s Consultation Paper 171 (www.lawcom.gov.uk/files/cp171.pdf) on trustee exemption clauses, the ACT responded to the Law Commission CP 166 (www.lawcom.gov.uk/files/cp166.pdf) on unfair contract terms with the view that corporate finance arrangements, including corporate finance trusteeships, should be specifically excluded from the reasonableness tests discussed in the paper.
This would prevent the introduction of uncertainty which could be extremely damaging to the efficient operation of the wholesale markets.