Commercial Law – Unfair Contract Terms – Commercial Property – Loan Agreement

The case of Evans v Cherrytree Finance Ltd [2008] concerned unfair contract terms in relation to a loan agreement. The defendant company in this case ran a business which involved lending money to non-status, high risk borrowers on commercial premises.

The claimant and his wife owned a property. The property was used for their antiques business in which they were partners. In 1993, part of the property was converted into residential accommodation. From that point on the claimant and his family lived in the residential part of the property (“the Residential Accommodation”).

The Residential Accommodation and the business premises had separate addresses. Unfortunately, in 1999, the claimant’s wife initiated divorce proceedings and the partnership was dissolved. During the course of the divorce, the claimant’s wife secured an order for the property to be sold.

Understandably, the claimant was anxious to prevent the sale. The claimant was granted four weeks in order to raise