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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11129
Experience:  30 years as a practising solicitor.
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Are unfettered clauses in a contract unchallengeable in court?

Resolved Question:

Are unfettered clauses in a contract unchallengeable in court? Does there have to be a fair and reasonable argument underpinning the cause for cancellation?
Submitted: 1 year ago.
Category: Scots Law
Expert:  JGM replied 1 year ago.
Thank you for your question.
-Could you explain your situation a little more?
Customer: replied 1 year ago.
We agreed a 7 day licence to sell Magazine subscriptions from a Kiosk in a Glasgow Mall. Due to a twitter storm by persons unknown accusing us of being a political protest group akin to UKiP or SDL the Mall asked us to leave. We explained that this was done with malicious intent as we were not a political party. They stated clause 10 - an unfettered clause that allowed them to cancel the licence at any time without cause.My question therefore was - If we took them to court over contract cancellation due to outside influences, would this unfettered clause stand without any fair and reasonable explanation
Expert:  JGM replied 1 year ago.
The Mall has signed you up to a short term contract with a provision that they can terminate at any time without reason. This is not challengeable as it is a contract that you agreed to.
Customer: replied 1 year ago.
So, just to be clear, the 'without cause' cannot be challenged even though the reasons given were false and of malicious intent?
Expert:  JGM replied 1 year ago.
That's correct. Whatever the reason is not relevant as they can just ask you to leave. That is what you signed up to.
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