Unfair Contract Terms Act 1977 Notes

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Unfair Contract Terms Act 1977 Revision

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Unfair Contract Terms Act 1977

1.— Scope of Part I. • (1) For the purposes of this Part of this Act, "negligence" means the breach— o (a) of any obligation,  arising from the express or implied terms of a contract, • to take reasonable care or exercise reasonable skill in the performance of the contract; o (b) of any common law duty to take reasonable care or exercise reasonable skill (but not any stricter duty); o (c) of the common duty of care imposed by the Occupiers' Liability Act 1957 or the Occupiers' Liability Act (Northern Ireland) 1957.

• (2) This Part of this Act is subject to Part III; and in relation to contracts, the operation of sections 2 to 4 and 7 is subject to the exceptions made by Schedule 1.

• (3) In the case of both contract and tort, sections 2 to 7 apply only to business liability, o that is liability for breach of obligations or duties arising—

 (a) from things done or to be done by a person in the course of a business (whether his own business or another's); or  (b) from the occupation of premises used for business purposes of the occupier;

• (4) In relation to any breach of duty or obligation, o it is immaterial for any purpose of this Part of this Act  whether the breach was inadvertent or intentional, or whether liability for it arises directly or vicariously.

2.— Negligence liability. • (1) A person cannot by reference to any contract term or to a notice given to persons generally or to particular persons o exclude or restrict his liability for death or personal injury resulting from negligence. • (2) In the case of other loss or damage, o a person cannot so exclude or restrict his liability for negligence  except in so far as the term or notice satisfies the requirement of reasonableness. • (3) Where a contract term or notice purports to exclude or restrict liability for negligence o a person's agreement to or awareness of it  is not of itself to be taken as indicating his voluntary acceptance of any risk.

3.— Liability arising in contract. • (1) This section applies as between contracting parties where one of them deals as consumer or on the other's written standard terms of business.

• (2) As against that party, the other cannot by reference to any contract term — o (a) when himself in breach of contract, exclude or restrict any liability of his in respect of the breach; or o (b) claim to be entitled—

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