Case law

  • Case Details
    • National ID: No.1-lg
    • Member State: Latvia
    • Common Name:link
    • Decision type: Administrative decision, first degree
    • Decision date: 24/02/2012
    • Court: Consumer Rights Protection Centre
    • Subject:
    • Plaintiff: Unknown
    • Defendant: SIA „AGA”
    • Keywords: unfair terms
  • Directive Articles
    Unfair Contract Terms Directive, Article 3, 1. Unfair Contract Terms Directive, Article 3, 2.
  • Headnote
    A formal negotiation of contractual terms cannot be considered an individual negotiation within the meaning of Directive 93/13 Art. 3(1). Even an explicit consumer’s confirmation that he/she has become acquainted with standard terms of a contract cannot exclude the applicability of the Directive 93/13/EEC.
  • Facts
    Following a complaint by a consumer the court reviewed the terms of defendant’s contracts offered to consumers. Some of the terms were deemed to be potentially unfair. It was the position of the defendant that the contracts were individually negotiatiated since the consumers had agreed to the terms by signing the contracts prepared by the defendant.
  • Legal issue
    The court considered that for contractual terms to be individually negotiated, the contracting parties must have agreed to them through reciprocal exchange of opinions. Therefore, a mere signature at the bottom of a contract is not sufficient evidence that the contracting parties have negotiated each contractual term individually. A theoretical possibility for parties to negotiate each of the terms individually does not prove it has, indeed, happened. Thus, a formal negotiation of contractual terms (e.g., by the consumer merely providing his signature at the bottom of a contract) cannot be considered an individual negotiation within the meaning of Directive 93/13 Art. 3(1). Furthermore, even an explicit confirmation by the consumer that he/she has become acquainted with the standard terms of a contract and has agreed to them does not exclude the applicability of the Directive 93/13/ECC.
  • Decision

    Can a formal negotiation of contractual terms be considered an individual negotiation within the meaning of Art.3(1) of the Directive 93/13/EEC?

    URL: http://www.ptac.gov.lv/sites/default/files/24.02.2012_lemums_sia_aga.pdf

    Full text: Full text

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  • Result
    The court adopted a decision requesting the defendant to cease the application of the non-negotiated and unfair contractual terms.