4 ms·
I can give you an example from a very different legal tradition, the German one. Even some in Germany say it goes too far in the other direction but it might be
by germanier 9y ago
I can give you an example from a very different legal tradition, the German one. Even some in Germany say it goes too far in the other direction but it might be valuable to see what others are doing.
Whenever a contract party uses preformulated clauses (i.e. not negotiated for that specific contract) such as TOS, they are limited in what they are allowed to put in there and any unclear clause is interpreted to their disadvantage. It cannot be unreasonably detrimental or surprising to the other party. For contracts with consumers there is a list of what is definitely considered detrimental. It includes binding arbitration.
Yes, this limits the freedom to conclude contracts. The justification used is that usually the party using preformulated clauses has much larger negotiating power and such a relationship is usually not made of equals.