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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 .
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 ...
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The Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999/2083) was a UK statutory instrument, which implemented the EU (then EEC) Unfair Consumer Contract Terms Directive into domestic law. [n 1] It replaced an earlier version of similar regulations, [n 2] and overlaps considerably with the Unfair Contract Terms Act 1977.
apply the Unfair Contract Terms Act 1977; apply the Unfair Terms in Consumer Contracts Regulations 1999; But before 1977, legislation to directly regulate unfair terms did not exist, [25] and jurisprudence on implied terms was underdeveloped. Even now, with one notable exception, [26] the courts have not accepted that they have any inherent ...
MA Chirelstein, Concepts and Case Analysis in the Law of Contracts (6th edn 2010) EA Farnsworth, Contracts (2008) LL Fuller, MA Eisenberg and MP Gergen Basic Contract Law (9th edn 2013) CL Knapp, NM Crystal and HG Prince, Problems in Contract Law: Cases and Materials (7th edn Aspen 2012) Books. OW Holmes, The Common Law (1890) chs 7-9
Condition 8 of their contract stated the driver would be deemed to be the employee of Phillips Products. The driver crashed into Phillips’ factory wall. Phillips argued that Hamstead Plant Hire should pay for the damage caused by Mr Hyland, because condition 8 was caught by UCTA 1977 section 2(2) and was unreasonable.
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).