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The Unfair Contract Terms Act 1977 regulates clauses that exclude or limit terms implied by the common law or statute. Its general pattern is that if clauses restrict liability, particularly negligence , of one party, the clause must pass the "reasonableness test" in section 11 and Schedule 2.
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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. The terms extend to ...
[n 1] It replaced an earlier version of similar regulations, [n 2] and overlaps considerably with the Unfair Contract Terms Act 1977. It was superseded by the Consumer Rights Act 2015, which regulates unfair terms in consumer contracts in English contract law.
Archived (PDF) from the original on 3 February 2020; Morgan, Bryn (18 June 2001b). General Election results, 7 June 2001 (PDF) (Report). House of Commons Library. Archived (PDF) from the original on 3 February 2020; Mellows-Facer, Adam (10 March 2006). General Election 2005 (PDF) (Report). House of Commons Library.
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A term in the contract limited liability of Messer under s 14 of the Sale of Goods Act 1979 (which by virtue of UCTA 1977 can only be limited as it satisfies the requirement of reasonableness). The judge found that the only relevant express term in the supply agreement was that the carbon dioxide would conform with British Standard 4105.
The Salvage Association v CAP Financial Services Ltd [1995] FSR 655, failure to show evidence of why a particular limit is put in may lead to it being unreasonable; British Fermentation Products Ltd v Compair [1999] 2 All ER (Comm) 389, Judge Bowsher QC had some trouble with the ‘written standard terms of business’ line in UCTA 1977 s 3, holding that the industry's model forms of contract ...