Under section 62 of the Consumer Rights Act 2015, a term in a consumer contract is unfair if, contrary to good faith, it causes a significant imbalance in the parties’ rights and obligations to the consumer’s detriment, and an unfair term is not binding on the consumer. That test applies to the terms and conditions in a boiler quote or installation contract, and Schedule 2 lists examples that may be regarded as unfair.

When Part 2 applies

Section 61 says Part 2 applies to a contract between a trader and a consumer, and to a notice to the extent that it relates to their rights and obligations or purports to exclude or restrict the trader’s liability. A boiler installation agreement with a homeowner is a typical example. Part 2 is separate from the rules on faulty goods and poor workmanship, which are covered in the guide to poor boiler installation workmanship.

The fairness test

Section 62(4) says a term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties’ rights and obligations under the contract to the detriment of the consumer. Whether a term is fair is decided by taking into account the nature of the subject matter of the contract and by reference to all the circumstances when the term was agreed and to all the other terms of the contract or any other contract it depends on. An unfair term is not binding on the consumer, although section 62(3) says the consumer may still rely on it if they choose.

The grey list in Schedule 2

Section 63 introduces Schedule 2, which gives an indicative and non-exhaustive list of terms that may be regarded as unfair. It is a guide rather than an automatic ban, so the test in section 62 still applies. For a boiler contract, the entries most likely to be relevant concern cancellation, price and changes to the deal, and they are described in the sections below.

Cancellation charges and deposits

Schedule 2 includes a term that lets the trader keep sums paid where the consumer decides not to conclude or perform the contract, without giving the consumer equivalent compensation where the trader cancels. It also includes a term requiring a consumer who does not conclude or perform the contract to pay a disproportionately high sum in compensation or for services not supplied, and a similar term for a consumer who fails to fulfil their obligations. A term letting the trader dissolve the contract at its discretion when the consumer has no equivalent facility, or keep sums for services not yet supplied where the trader dissolves it, is also listed. Statutory cancellation periods are covered in the guide to cancelling a boiler installation contract.

Price rises and changes to the job

Several entries concern the price and the scope of work. Schedule 2 lists a term allowing the trader to increase the price without giving the consumer the right to cancel if the final price is too high compared with the agreed price, and one giving the trader discretion to set the price after the consumer is bound where no price or method of determining it was agreed. It also lists a term that lets the trader alter the contract unilaterally without a valid reason specified in the contract, and a term allowing it to change the characteristics of the goods or services without a valid reason. Those points are useful when comparing quotes, as covered in the guide to comparing boiler installation quotes.

Other suspect terms

The list also includes terms that give the trader the right to decide whether the goods or services conform to the contract or the exclusive right to interpret it, terms that limit the trader’s obligation to honour commitments made by its agents, terms that let the trader transfer its rights and obligations where this may reduce the guarantees, and terms excluding or hindering the consumer’s right to take legal action, such as requiring disputes to go exclusively to arbitration not covered by legal provisions. Guarantees are discussed in the guide to insurance-backed guarantees.

Price, main subject matter and transparency

Section 64 says a term cannot be assessed for fairness to the extent that it specifies the main subject matter of the contract or concerns the appropriateness of the price compared with what is supplied, but only if the term is transparent and prominent. A term is transparent if expressed in plain and intelligible language and legible, and prominent if brought to the consumer’s attention so that an average consumer would be aware of it. Section 68 requires a trader to ensure that a written term is transparent, and section 69 says that where a term could have different meanings, the meaning most favourable to the consumer prevails.

FAQs

Is a term on the grey list automatically unfair?

No. Schedule 2 is an indicative and non-exhaustive list of terms that may be regarded as unfair, and section 62 still requires the significant imbalance test.

Does an unfair term cancel the whole contract?

Section 62 says an unfair term is not binding on the consumer. It does not say the whole contract falls away.

Does this replace the 14-day cancellation right?

No. Part 2 concerns the fairness of terms, whereas cancellation periods come from separate regulations.

The bottom line

An unfair term in a boiler contract is not binding on the customer, and Schedule 2 flags terms to watch for: disproportionate cancellation payments, price rises without a right to cancel, one-sided changes and limits on legal action. Written terms must be transparent, and ambiguity is resolved in the consumer’s favour. This is general information, not regulated advice on any specific installation.

Sources

This guide draws on the following primary sources, current as of 24 September 2026:

• legislation.gov.uk, “Consumer Rights Act 2015, section 62: Requirement for contract terms and notices to be fair”
• legislation.gov.uk, “Consumer Rights Act 2015, section 64: Exclusion from assessment of fairness”
• legislation.gov.uk, “Consumer Rights Act 2015, Schedule 2: Consumer contract terms which may be regarded as unfair”
• legislation.gov.uk, “Consumer Rights Act 2015, section 61: Contracts and notices covered by this Part”

Related guides

Best Boiler Deals is an independent guide. We may earn a fee from some links; this never affects what we write. This article is general information, not regulated advice on any specific installation — always confirm the details with a Gas Safe registered engineer.