Contract terms that may have different meanings
PART 2 Unfair terms
(1)If a term in a consumer contract, or a consumer notice, could have different meanings, the meaning that is most favourable to the consumer is to prevail.
(2)Subsection (1) does not apply to the construction of a term or a notice in proceedings on an application for an injunction or interdict under paragraph 3 of Schedule 3.
(3) A contract to which this Part applies is referred to in this Part as a “consumer contract”.
Defined in s.61(3) · see it in the full Act“consumer contract” has the meaning given by section 61(3);
Defined in s.76(1) · see it in the full Act(7) A notice to which this Part applies is referred to in this Part as a “consumer notice”.
Defined in s.61(7) · see it in the full Act“consumer notice” has the meaning given by section 61(7);
Defined in s.76(1) · see it in the full ActWhere a consumer term is capable of different meanings, the court must prefer the meaning most favourable to the consumer. In construing the committee’s authority, that principle weighed against a broad implied power because it exposed clients to substantial costs risk (see paras [52]-[53]; [126]).
The court applied the consumer-favourable interpretation rule to the ambiguity whether systems or communications errors included direct human programming errors. B2 was construed as not covering the relevant human error. (see paras [98]-[100])
Confirms that the consumer-favourable construction rule applies only where a term has different possible meanings. Clause 16.9 was clear and unambiguous, so the rule was not engaged (see para [99]).
What each judgment says about section 69 is in the case-law panel in the full Act.
331.Contract terms can be ambiguous and capable of being interpreted in different ways, especially if they are not in writing or in an accessible format. In these cases, this section ensures that the interpretation that is most beneficial to the consumer, rather than the trader, is the interpretation that is used.
332.This section reflects regulation 7(2) of the UTCCRs, which implements Article 5 of the UTCCD.