Contract That Undergo Health Terms And Conditions

The fitness sector is one of the quickest growing in the Western world, particularly when talking about gyms and gym memberships, which cost hundreds of dollars for a subscription of a few months. For the majority of users of gym services, the conventional plan is to sign up for a registration and the gym fees are taken off each month directly from the user’s credit card or bank account. Given the range for abuse in a system of this variety, contracts for gym membership sometimes run afoul of the EU Directive on Unfair Terms in Consumer Contracts, adopted in the UK as Consumer Contracts Regulations.

It is such a contract that has witnessed the Office of Fair Trading engage in a High Court order in opposition to gym management company, Ashbourne Management Services Limited after questions were raised about its conformity with consumer credit laws and fairness in contract provisions.

Ashbourne Management Services Becomes A Case Study: Ashbourne created a method of drawing up membership agreements and collecting payments. Within the terms of the agreement, users were locked into a contract for around three years at a time, in which they were could not terminate their subscriptions. People who attempted to do so were often offered bills worth hundreds of pounds for the most of the amount owed on the gym membership contract. Most of the gym users were incapable to pay the bill, and were noted to a credit defaulting agency by Ashbourne.

In classic contract law, such an deal would not show a problem. However, the proliferation of laws designed to defend buyers signifies that such terms are increasingly likely to be found against the law and may render part, or your entire contract void. In order to avoid situations like this, ensure that your contracts are drafted and/or reviewed by a licensed solicitor with experience in commercial contract drafting.

It is such a contract that has noticed the Office of Fair Trading pursue a High Court order towards gym management company, Ashbourne Management Services Limited, after uncertainties were brought up about its compliance with consumer credit laws and fairness in contract provisions.

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