Statutory Instruments

1996 No. 3211


The Unfair Arbitration Agreements (Specified Amount) Order 1996


19th December 1996

Laid before Parliament

20th December 1996

Coming into force

31st January 1997

The Secretary of State, in exercise of the powers conferred on him by section 91(3)(a) and (b) of the Arbitration Act 1996(1), with the concurrence (as respects England and Wales) of the Lord Chancellor and (as respects Scotland) of the Lord Advocate, hereby makes the following Order:

1.  This Order may be cited as the Unfair Arbitration Agreements (Specified Amount) Order 1996, and shall come into force on 31st January 1997.

2.  The amount of £3,000 is hereby specified for the purposes of section 91 of the Arbitration Act 1996 (arbitration agreement unfair where modest amount sought).

John M. Taylor,

Parliamentary Under-Secretary of State for Corporate and Consumer Affairs,

Department of Trade and Industry

16th December 1996

I concur,

Mackay of Clashfern, C.

17th December 1996

I concur,

Mackay of Drumadoon,

Lord Advocate's


19th December 1996

Explanatory Note

(This note is not part of the Order)

This Order specifies the amount of £3,000 for the purposes of section 91 of the Arbitration Act 1996. Subsection (1) of that section provides that a term which constitutes an arbitration agreement is unfair for the purposes of the Unfair Contract Terms in Consumer Contracts Regulations 1994 (S.I. 1994/3159), which implement Council Directive 93/13/EEC on unfair terms in consumer contracts (OJ No. L95, 21.4.93, p.29), so far as the term relates to a claim for a pecuniary remedy which does not exceed the amount specified by order for the purposes of that section.

Section 89(1) defines “arbitration agreement” as an agreement to submit to arbitration present or future disputes or differences (whether or not contractual).