Search results
Results from the WOW.Com Content Network
The Unfair Contract Terms Act 1977 (c. 50) is an act of Parliament of the United Kingdom which regulates contracts by restricting the operation and legality of some contract terms. It extends to nearly all forms of contract and one of its most important functions is limiting the applicability of disclaimers of liability. The terms extend to ...
Unfair terms in English contract law are regulated under three major pieces of legislation, compliance with which is enforced by the Competition and Markets Authority (CMA). The Unfair Contract Terms Act 1977 is the first main Act, which covers some contracts that have exclusion and limitation clauses. For example, it will not extend to cover ...
The two main issues in the case were whether the limitation clause should be interpreted to cover the seeds actually sold, given that the seeds were wholly defective and so did not do a seed's job at all and whether, under the Unfair Contract Terms Act 1977, s 2(2) the limitation was reasonable (s 11).
First, it concerned the existence of a duty of care in tort for negligent misstatements, not made directly to someone relying on the statement. Second, it concerned the reasonableness of a term excluding liability under the Unfair Contract Terms Act 1977, s 2(2) and s 11.
The Judge found the lease was entered based on the landlord's misrepresentation, and clause 5.8 attempted to exclude liability for misrepresentation, but was unreasonable under the Misrepresentation Act 1967 section 3 and the Unfair Contract Terms Act 1977 section 11. Their liability was not limited to the extent of the trust's assets.
It was held that even though the defendants had issued a liability waiver, it could not stand up to the Unfair Contract Terms Act 1977's test of reasonableness. More importantly, however, the court held that it was fair, just and reasonable for the purchaser of a modest house to rely on the surveyors' evaluation, as it was such common practice.
The Suisse Atlantique and Photo Production cases together represent the final authoritative statements of the common law on fundamental breach prior to the enactment of the Unfair Contract Terms Act 1977. The Act provides that some contract terms are VOID (such as limiting liability for causing death or injury through negligence), while others ...
Although the case is important for these two propositions, today any exclusion of negligence liability for personal injury by businesses is prohibited by the Unfair Contract Terms Act 1977 s 2(1) and the Unfair Terms in Consumer Contracts Regulations 1999 Sch 2, para(a).