Thursday, June 30, 2016

Court orders Postal Service to justify lawfulness of three standard clauses

Court orders Postal Service to justify lawfulness of three standard clauses

"... summary judgment, the court instead found that several contract clauses were ambiguous, not supported by adequate consideration, and imposed an unreasonable burden on due process. Given the “great disparity in bargaining power” between the parties, and the contractor’s failure to receive anything in return for her concession, the court found that these clauses create a “contract of adhesion.” The clauses are contained in the Postal Service’s Terms and Conditions for Contract Delivery Service (CDS) contracts, and also appear in similar terms for Highway Contract Route (HCR) contracts. The first clause the court found unenforceable was section C.2.10, entitled “Usage of Postal Facilities.” At first blush, the clause seems inapplicable to any issue in the case, because it primarily concerns parking on postal premises ..."   

Reference: www.lexology.com

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