An unfair contract term is any term in a consumer or commercial contract that creates a significant imbalance in rights and obligations of the parties arising out of the contract and is likely to cause det­riment (financial or otherwise) to a party of the contract; and is not reasonably necessary for protecting the legitimate interest of the party seeking to rely on it.

Organised by Law Reform Commission yesterday, it brought together stakeholders to discuss and establish a compelling case for the introduction of legislation to address unfair contract terms in Ghana.

It was under the theme: “De­veloping the law on unfair con­tract terms in Ghana- A statutory framework approach”.
    

The Attorney General and Minister for Justice, Mr Godfred Dame, in a speech read on his behalf by his deputy, Mr Alfred Tuah-Yeboah, said the conference was in line with the transforma­tional agenda of government to make the law practicable to respond to the socio-cultural and economic needs of Ghanaians at all times.

He stated that for democracy to be effective, it was important that laws be reformed to meet the fast-changing needs of society.

He said the country’s existing law pertaining to unfair contract terms was derived from the En­glish Common Law.

However, over the years, while UK and other countries worldwide, had developed rules that took care of terms deemed unfair in contacts by way of seeking to limit and or exclude liability of parties to a contract, Ghana had not.

“The English Courts through precedent have also developed broad topics of incorporation of the exclusion clause; construction of exclusion clause and whether or not the reliance on the exclusion clause results in the fundamental breach of the contract, to over the years resolve contests arising be­tween parties on the basis of unfair contract terms,” he added.

The AG pledged his commit­ment to ensure that the Law Re­form Commission was equipped to carry out its mandate for the good of the country.

A Justice of the Court of Ap­peal, Dr Ernest Owusu-Dapaah, in a presentation said legislating on unfair contract terms in Ghana involved addressing several im­portant issues to protect the rights and interests of consumers and promote fair and ethical business practices.

Some of the key issues that needed to be considered and ad­dressed in such legislation he said, were clear definitions of unfair contract term to ensure legal clarity for businesses and consumers, consumer rights to establish and protect the fundamental rights of consumers, the right to fairness, and the right to redress in case of disputes.

The Head of Public Law Department, Faculty of Law, UPSA, Dr Francisca Kusi-Appiah, recommended that simple language be used for all contractual terms for easy understanding as well as a clear indication of opt in and out provisions on all digital platforms in Ghana considering the literacy rate in the country.

 BY VIVIAN ARTHUR & CYNTHIA ASAMPANA