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View Full Version : Removing right of offset



MrShed
17-12-2005, 23:45 PM
Has come up on another forum I visit. Would a term in an AST removing the right of offset be an unfair term?

davidjohnbutton
18-12-2005, 11:29 AM
In my opinioon it would because at common law, if you are owed some money by someone but yet you (allegedly) owe that person something then, when it gets to court, they have the right to submit a counterclaim effectively offsetting your own claim against them.

The unfair contract terms legislation calls any term unfair which restricts the ordinary rights of the tenant or puts them into an unbalanced situation where their rights are less than the rights of the other person to the contract.

MrShed
18-12-2005, 11:36 AM
As I thought, thanks DJB

PaulF
19-12-2005, 10:27 AM
Just to add. Any clause denying the tenant the right to offset or deduct monies from the rent is likely to be considered an unfair term as the tenant might only have that remedy if the landlord was either slow or ignored their obligations under S.11 of the Landlord & Tenant Act 1985. to keep the property in a good state of repair!