What are void (grossly unfair) contractual terms?
Void (grossly unfair) contractual terms undermine the purpose of the late payment legislation. For example, they might seek to deny the supplier their right to reasonable compensation for debt recovery costs and/or remove or minimise the supplier’s right to statutory interest for late payment. For example, the customer might try to impose unilaterally a reduction in the rate of interest to be charged for late payment and/or increase the length of the credit period. Guidance: See How you do business What can you do? Any business or the public sector is entitled to go to court and challenge such terms and conditions. See How you do business Representative bodies officially recognised as, or having a legitimate interest in representing SMEs may go to court on behalf of the SME(s) and challenge as grossly unfair contractual terms which purchasers wish to rely upon. If the party that makes the challenge is successful, the Court will strike down as void the offending term(s) and the provisio
