"You cannot get away from a contract by simply not reading it - many people would repudiate their contracts if this was the case."
This is one reason, I think, why contract signings are witnessed. In a dispute the witness can testify that you did in fact read, appear to understand, and willingly sign. And this is why online TOS are difficult to enforce: no way to prove that you even saw the contract or intended to click the "agree" button.
"banks can unilaterally change the interest rate on your property"
Say what? If I sign a 30 year note for 3% interest it's 3% for 30 years, and the bank is stuck with that.
>Say what? If I sign a 30 year note for 3% interest it's 3% for 30 years, and the bank is stuck with that.
Yes. if a bank would sign a contract with you then it is valid. I highly doubt that would be the case, the bank needs to borrows the money from someone else. They just merely make the difference in the interest rates. Taking a fixed interest rate would mean that they risk losing money if the money the borrow from somewhere else exceeds 3% in the next 30 years.
>why contract signings are witnessed. In a dispute the witness can testify that you did in fact read, appear to understand, and willingly sign. And this is why online TOS are difficult to enforce
This is not a problem at all.
In Common Law jurisdictions (US, UK), contracts do NOT have to be witnessed (with some exceptions like Wills). Contracts that is signed without any witness are perfectly valid. This would apply to your ToS, if it states the laws of US, UK would apply to this contract. All contracts would state the jurisdiction that applies and all (respectable) courts would honor that term.
"if a bank would sign a contract with you then it is valid."
I still don't understand - I think you might be confused about how mortgages work. Every loan is a contract. There is no such thing as the bank just giving you some money and then deciding on the interest rate later. Adjustable rate loans adjust according to a formula in the contract. Fixed rate loans are fixed, and the bank enters into the contract because they estimate that they will make a profit. If they don't, they are still stuck with it. It's a contract, they can't change it.
"contracts do NOT have to be witnessed"
I know; I never said they did. I just said that witnessing can help establish the validity of a contract if a dispute arises, and that TOS click-throughs lack this. I'm pretty sure that any serious contract, involving a lot of money, is witnessed. All of the house loans I've ever signed for have been witnessed, and I had to prove my identity as well.
This is one reason, I think, why contract signings are witnessed. In a dispute the witness can testify that you did in fact read, appear to understand, and willingly sign. And this is why online TOS are difficult to enforce: no way to prove that you even saw the contract or intended to click the "agree" button.
"banks can unilaterally change the interest rate on your property"
Say what? If I sign a 30 year note for 3% interest it's 3% for 30 years, and the bank is stuck with that.