What defines a ‘standard form consumer contract’?

A ‘standard form consumer contract’ is defined as a contract prepared by one party on a 'take it or leave it' basis. This type of contract typically does not allow for negotiation of terms by the other party, who is often at a disadvantage when entering into it. The standard form is presented with all terms set by the drafting party, most commonly in consumer transactions, where consumers have limited bargaining power.

This definition aligns with the underlying principles of good faith in consumer transactions, aiming to protect consumers from potentially exploitative terms that may arise from their inability to negotiate. The concept also addresses the need for transparency and fairness in contractual agreements, as such contracts are often used in situations where one party has more power or a greater degree of influence over the terms.

In contrast, a contract that is negotiated by both parties does not qualify as a standard form consumer contract because negotiation implies mutual agreement on terms and conditions, indicating a balance of power. A contract modified for each individual consumer also does not fit, as it negates the 'standard form' aspect where uniform terms are applied to multiple consumers. Similarly, a verbal agreement does not meet the criteria for a standard form consumer contract because it typically lacks the formalized structure and terms that are inherent in a