Contract law know-how safeguards against 'unfair' claims

Training in contract law could be a must for many small firm owners, it has been suggested.

Business consultant Brian Sweeney noted that many bosses currently risk falling foul of the Financial Services Authority (FSA) and Unfair Terms in Consumer Contracts Regulation as a result of failure to complete annual reviews "and a general lack of resources".

He offered his insight to CityWire following an FSA review of adviser contracts, which revealed that half of those tested contained unfair terms.

Variations allowing advisers to impose changes without prior consent or customer agreement were a particular worry, while smaller firms were criticised for operating systems and controls which gave rise to inconsistent contract results.

"Smaller firms don't have the resources that large firms do but they have the same responsibilities," Mr Sweeney remarked to the news provider.

Urging managers to seek training advice from a contract law specialist, he continued: "If you make a statement about the quality or quantity of service that will be given, then that is part of the contract and clients will expect to receive that service."

Contracts solicitor Allis Karim previously informed bosses that investing in contract law training can pre-empt an array of business woes, singling out the practice of not putting contracts in writing as a regular instigator of problems.