Legal Literature

Unfair Contract Terms Directive, Article 1, 2. Unfair Contract Terms Directive, Article 3, 1. Unfair Contract Terms Directive, Article 3, 3. Unfair Contract Terms Directive, Article 4, 1. Unfair Contract Terms Directive, Article 6, 1.

This article deals with a particular case of bank loans, those that were issued in Swiss Francs. These loan agreements include a pre-defined standard clause regarding the exchange rate that defined the way that the debt (deriving from the loan) would be exchanged in the local currency (Euros). The article focuses on that particular general term and discusses thoroughly on whether such term may be considered as abusive or not. The authors suggest that in case that this clause is considered as abusive then the gap that would be created could be covered by correctly interpreting the will of the parties and the nature of the contract. It also elaborates on whether the breach of the principle of transparency incurs any liability of the issuer of the loan to compensate the borrower/consumer.