What is Informed Consent and why it could make or break your contract
Learn how recent court rulings on informed consent are reshaping contract enforceability and protecting consumers from hidden terms and bad practices.
Imagine this: You sign a contract for a new service. The salesperson is friendly, the price seems reasonable, and you skim through the agreement before signing. A few months later, you realize you’ve been charged hidden fees. When you challenge it, the company points to a clause buried in the fine print.
But here’s the kicker—recent court rulings suggest that if you weren’t properly informed, that contract might not even be enforceable.
That’s where informed consent comes in.
In this blog, we’ll explore:
What is informed consent?
Informed consent is not a new concept—it has been a cornerstone of medical ethics for decades. In healthcare, patients must be given clear, comprehensive information about medical procedures, risks, and alternatives before they can agree to treatment. Without informed consent, a doctor performing a procedure could face legal consequences, even if the patient signed a consent form.
But in recent years, the idea of informed consent has been making its way into the wider legal world, particularly in contract law, consumer rights, and data privacy.
Why? Because courts and regulators are recognizing that simply signing an agreement doesn’t mean someone truly understood it.
Just like a patient needs to know what a surgery involves before agreeing to it, a business or consumer needs to fully grasp the terms of a contract before being bound by it.
For consent to be legally valid, it must be:
- ✅ informed – The person must be properly exposed to the terms in a way that allows them to understand their implications.
- ✅ comprehended – The language must be clear enough for the average person to understand.
- ✅ voluntary – The agreement must be entered into without pressure, deception, or hidden terms.
This shift in legal thinking means that contracts are no longer just about what’s written on paper—they are about how well the other party understood what they were signing.
And if you can’t prove that they truly understood? Your contract might not be enforceable.
Informed = Clarity & exposure
For consent to be informed, it’s not enough for information to exist—it has to be presented in a way that people can reasonably understand and given to them in a way that ensures they actually see it.
That means:
- ✔️ clear language – No hidden legal jargon traps
- ✔️ key terms upfront – No surprises buried in the fine print
- ✔️ real opportunity to review – Time to read, ask questions, and seek clarification
Being informed isn’t just about having access to the information—it’s about having the chance to process it. If a contract is too complex, deceptive, or rushed through, then consent isn’t truly informed.
Consent = Real choice
Consent isn’t just a checkbox—it’s a genuine decision made freely.
A contract should never be signed under:
- 🚫 Pressure or manipulation
- 🚫 Misleading claims about what it really means
- 🚫 Conditions that force agreement without real alternatives
If someone wasn’t given enough time or explanation to fully grasp what they were agreeing to, is that real consent? Courts are starting to say no.
The courts are cracking down
For years, companies have relied on long, complex contracts to protect themselves—but courts are shifting in favor of consumers and businesses who weren’t properly informed.
Recent legal rulings show the importance of informed consent:
2024 | Johnson vs. Firstrand Bank Ltd
Motor dealers that failed to specifically disclose commissions when arranging finance had breached their fiduciary duty to act in customers’ best interests.
"Terms buried in fine print may not be enforceable, even if the contract was signed."
2024 | Digital Markets, Competition, and Consumers Act
This Act strengthens consumer protection by introducing stricter rules on misleading practices and reinforcing the need for complete clarity in consumer contracts.
2022 | Belsner vs. Cam Legal Services
In this landmark case, the Court of Appeal held that merely signing a document did not provide "informed consent" and that solicitors could not charge additional fees without ensuring clients fully understood the agreement.
2024 | Oakwood v Menzies
"The sign-up process the defendant used was not fair, and they were not properly or adequately 'informed'. Simply requesting a 'click' to e-sign the document was insufficient evidence of consent."
Regulators are promoting informed consent to protect consumers & businesses
Regulatory bodies are reinforcing the need for clear, informed agreements.
Financial Conduct Authority
"It’s not about presenting a customer with a form and saying, 'Tick this box to show you understood it.' "
Kate Tuckley, FCA Head of Consumer Investments
Solicitors Regulation Authority
"We ask the firm to show us that the client has given informed consent to the arrangement."
General Medical Council
"All patients must be supported to make informed decisions about their care."
Regulators are making it clear: informed consent is no longer optional—it’s a requirement.
Prove it – or risk losing it
So what does this mean for businesses? If you want your contracts to hold up, you need proof that consent was informed.
- ✅ Use clear and simple language
- ✅ Make sure people are exposed to and have time to understand key terms
- ✅ Keep a record of how consent was obtained
No proof? Your contract could be worthless.
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Links and References
Internal links
- What is Informed Consent? – a deeper look at what informed consent means in a legal and commercial context, and why it goes well beyond the act of signing
- Why Signatures Fail – why courts are increasingly finding that a signature alone is not sufficient proof of understanding, and what stronger evidence looks like
- Contract Transparency & Audit Trails – how capturing a full record of what was communicated, shown, and confirmed protects businesses when consent is later challenged
- FCA & SRA Compliance – how the FCA Consumer Duty, SRA Code of Conduct, and other regulatory frameworks are making informed consent an enforceable requirement, not a best practice
- Behavioural Science & Contract Comprehension – the science behind why people don't read or absorb contracts, and how agreement design can change that
- Reducing Complaints & Disputes – how businesses that can evidence informed consent see fewer disputes, complaints, and enforcement actions
- Consumer Understanding & Complaints – the direct link between how well clients understand what they sign and how often they challenge it afterwards
- How i agree Works – how i agree uses plain-language summaries, video explanations, and confirmation steps to create a provable record of informed consent
- E-Signature Alternative UK – why click-to-sign is no longer sufficient in the light of recent court rulings, and what a stronger alternative looks like
- Benefits of i agree – the practical business case for investing in informed consent, from reduced disputes to stronger regulatory compliance
- Motor Finance Claims – how the Johnson v Firstrand ruling on undisclosed commissions is driving demand for informed consent solutions in motor finance
- Law Firms – how law firms are responding to cases like Belsner v Cam by adopting processes that go beyond signatures to evidence client understanding
- Financial Services – how financial services firms are meeting the FCA's informed consent expectations in practice
- Are Signatures Legally Binding? – why a signed document is not proof of understanding, and what the courts and regulators now expect instead
- Beyond Honesty: How Transparency in Agreements Builds Customer Trust – the difference between making terms technically available and making them genuinely clear, and why it matters for trust and enforceability
- More than a signature: Why valid contracts depend on fundamentals – why the fundamental elements of a valid contract have always required real understanding, not just a mark on a page
- Communication failures are the top cause of legal complaints – how the failure to clearly explain terms before signing is the leading cause of complaints against law firms
External links
- UK Supreme Court – Johnson v Firstrand Bank Ltd [2024] – the landmark ruling finding that motor dealers breached their fiduciary duty by failing to disclose commissions, reinforcing the need for informed consent in financial agreements
- Court of Appeal – Belsner v Cam Legal Services [2022] – the Court of Appeal ruling that a client's signature on a CFA did not constitute informed consent to additional charges that had not been clearly explained
- Digital Markets, Competition and Consumers Act 2024 – the UK legislation strengthening consumer protections around misleading practices and requiring greater clarity in consumer contracts
- FCA – Consumer Duty – the FCA's rules requiring financial firms to demonstrate that customers genuinely understand what they are agreeing to, moving the standard well beyond tick-box disclosure
- SRA Code of Conduct for Solicitors – the professional standards requiring solicitors to ensure clients are in a position to give informed consent to fee arrangements and legal services
- General Medical Council – Consent guidance – the GMC's longstanding informed consent framework for medical practice, which is now influencing how consent standards are being applied in contract and consumer law
What is informed consent and why it matters for UK contracts
What is informed consent in contracts?
Informed consent means the person agreeing has been clearly given the key information, understands it, and makes a voluntary decision. It goes beyond a signature by focusing on real comprehension of terms, risks, and obligations before agreement is made.
Why is informed consent important for contracts?
Because a signature alone doesn’t prove understanding. Courts and regulators increasingly expect businesses to show that clients genuinely understood key terms. Without this, agreements may be challenged, disputes may rise, and contracts can even become unenforceable in certain cases.
What makes consent “informed”?
Consent is informed when information is clearly presented, easy to understand, and properly highlighted. It also requires that the person has time to review, ask questions, and make a free decision without pressure or misleading communication.
How are courts and regulators treating informed consent?
Courts and regulators are shifting focus from signatures to understanding. Cases like Belsner v Cam and rulings such as Johnson v Firstrand show that hidden or unclear terms may not hold up, even if signed. Regulators now expect evidence of clarity and comprehension.
Why aren’t traditional contracts and e-signatures enough?
Traditional contracts often rely on dense text and signatures that don’t confirm understanding. Many people don’t read or fully grasp terms, which creates risk. Without proof of comprehension, businesses may struggle to defend agreements if disputes arise.