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Exemption Clauses Ii Notes

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A more recent version of these Exemption Clauses Ii notes – written by Cambridge/Bpp/College Of Law students – is available here.

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Revision: Contract

Unfair Contract Terms Act 1977


Purpose: to impose limits on the extent to which liability for breach of contract or for negligence can be avoided by contractual terms


Provisions which ensure:

1. Certain type of ECs have no effect; and

2. Other types of ECs are effective only in so far as they satisfy the requirements of reasonableness

Scope of UCTA


S1(3): UCTA applies to business liability - this is the 'gateway' into UCTA o

S1(3)(a) and (b): business liability for breach of obligations arising (a) from things done or to be done by a person in the course of business or (b) from the occupation of premises used for business purposes of the occupier

Excluding liability for negligence: s2


S1(1) defines negligence: (1) "negligence" means the breach: (a) Of any obligation (express or implied) to take reasonable care/exercise reasonable skill (b) Any common law to take care/skill (c) Of the common duty of care imposed by the Occupier's Liability Act 1957


Note: s13 Supply of Goods and Services Act 1982 - implied term that the supplier will carry out services with 'reasonable care and skill' - breach of this would amount to negligence in accordance with UCTA s1(1)(a)


S2(1): a person cannot 'exclude or restrict his liability for death or personal injury resulting from negligence'


S2(2): to restrict liability for other loss or damage arising from negligence, one must satisfy the requirement of reasonableness

Reasonableness Test (s11 & sch 2)


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