Paragon Finance v Nash [2002]


  • Interest rate of loan not reduces with Bank of England Rate
  • Couldn’t afford repayments


  • Could house be repossessed? Unreasonable term allowing variation of interest rate?


  • Repossession allowed, UCTA not applicable


  • The interest rate is independent of the contractual performance, therefore UCTA doesn’t apply and not grossly exorbitant
RELATED CASE  Linden Gardens v Lenesta Sludge Disposal [1994]

Posted in Contract Law Revision Notes.

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