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Financial Services and Markets Act 2000

Section 28: Agreements made unenforceable by section 26 or 27

73.This section gives the court discretion to allow the contract which would otherwise be unenforceable under section 26 or 27 to be enforced against the customer.  The section also allows for the method by which the amount of compensation which a person may obtain is to be fixed. In order to enforce the contract, the court must be satisfied that it would be “just and equitable” to do so having particular regard to whether:

  • where the person contravening the prohibition is a party to the agreement, that he reasonably believed that he had not acted in breach of the prohibition; or

  • where the contravention was by a third party, that the authorised person providing the service did not know that the agreement resulted from a contravention.

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