Question 1

What contract clauses should I never sign?

Accepted Answer

The most dangerous clauses are: uncapped liability or indemnification (you could owe unlimited money); unilateral amendment rights (they can change the contract without your consent); liability caps below 6 months of contract value; non-compete clauses lasting more than 2 years; and auto-renewal with less than 60 days notice. These are the terms lawyers target first.

Question 2

Are non-compete clauses enforceable in the UK?

Accepted Answer

Non-compete clauses are only enforceable in the UK if they protect a legitimate business interest (such as confidential information or customer relationships) and are reasonable in scope, duration, and geographic area. Courts regularly strike down non-competes that are too long (generally over 12 months) or too broad. The 2019 Supreme Court case Tillman v Egon Zehnder is the leading authority.

Question 3

What does a liability cap mean in a contract?

Accepted Answer

A liability cap limits the maximum amount one party can be held responsible for if something goes wrong. The UK market standard is 12 months of contract fees. A cap below 6 months is a red flag — it means even if the other party causes you serious loss, you cannot recover more than that amount. Liability for death or personal injury caused by negligence cannot be capped under the Unfair Contract Terms Act 1977.

Question 4

What is an unfair contract term under UK law?

Accepted Answer

Under the Consumer Rights Act 2015 (for consumer contracts) and the Unfair Contract Terms Act 1977 (for business contracts), a term is unfair if it creates a significant imbalance between the parties' rights to the detriment of one party. Common examples: unilateral amendment rights, exclusion of liability for breach, and terms that prevent you from using your statutory rights. Unfair consumer terms are not legally binding on you.

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