What is a Reasonableness test?

Answer 1

Nicky Hartwell The reasonableness test is a flexible and open ended test. If UCTA1 had simply introduced a requirement that particular clauses must comply with the requirement of reasonableness, without any further guidance, it would have created a highly uncertain test. In order to redress the balance between certainty and fairness, the Act itself provides guidance on how the test is to be applied.2 There exists an extensive body of case law on its application. The broad reasonableness requirement is circumscribed by a list of relevant factors, which the courts will take into account when assessing whether a term meets that requirement. The application of the "reasonableness" test is a useful example of how the courts approach a broad flexible standard in the interests of fairness. http://perseus.herts.ac.uk/uhinfo/library/l33293_3.pdf Nicky Hartwell The reasonableness test is a flexible and open ended test. If UCTA1 had simply introduced a requirement that particular clauses must comply with the requirement of reasonableness, without any further guidance, it would have created a highly uncertain test. In order to redress the balance between certainty and fairness, the Act itself provides guidance on how the test is to be applied.2 There exists an extensive body of case law on its application. The broad reasonableness requirement is circumscribed by a list of relevant factors, which the courts will take into account when assessing whether a term meets that requirement. The application of the "reasonableness" test is a useful example of how the courts approach a broad flexible standard in the interests of fairness. http://perseus.herts.ac.uk/uhinfo/library/l33293_3.pdf