# Act on the Regulation of Terms and Conditions

> Act on the Regulation of Terms and Conditions

[Act on the Regulation of Terms and Conditions](https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EC%95%BD%EA%B4%80%EC%9D%98%EA%B7%9C%EC%A0%9C%EC%97%90%EA%B4%80%ED%95%9C%EB%B2%95%EB%A5%A0)

A <statute> intended to establish sound transactional practices by preventing businesses from abusing their bargaining position to draft and use unfair <terms and conditions>, and by regulating unfair terms, thereby protecting consumers and improving the lives of the public in a balanced manner.

## Key provisions

- **Article 1 (Purpose)**: The purpose of this Act is to establish sound transactional practices by preventing businesses from abusing their bargaining position to draft and use unfair terms and conditions and by regulating unfair terms, thereby protecting consumers and improving the lives of the public in a balanced manner.
- **Article 4 (Priority of Individual Agreements)**: If a business and a customer agree on something different from the terms and conditions concerning a matter covered by those terms, their agreement takes precedence over the terms and conditions.
- **Article 5 (Interpretation of Terms and Conditions)**: ② Where the meaning of a term is unclear, it shall be interpreted in favor of the customer.
- **Article 6 (General Principles)**: ① A term that is unfair in violation of the principle of good faith is void. ② A term containing any of the following is presumed unfair.
    1. A term unreasonably disadvantageous to the customer
    2. A term difficult for the customer to anticipate in light of all relevant circumstances, including the form of the transaction
    3. A term restricting essential contractual rights to the extent that the purpose of the contract cannot be achieved
- **Article 11 (Protection of Customers' Rights and Interests)**: A term concerning a customer's rights and interests that contains any of the following is void.
    1. A term excluding or restricting, without reasonable grounds, the customer's statutory rights, such as the right to raise a defense or the right of set-off
    2. A term depriving the customer, without reasonable grounds, of the benefit of a time period granted to them
    3. A term unreasonably restricting the customer's ability to enter into a contract with a third party
    4. A term permitting the business, without justifiable grounds, to disclose customer secrets learned in the course of business