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Exemption Clauses Ii Notes

GDL Law Notes > GDL Contract Law 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.

The following is a more accessble plain text extract of the PDF sample above, taken from our GDL Contract Law Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Revision: Contract

[EXEMPTION CLAUSES: STATUTORY]
Unfair Contract Terms Act 1977

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

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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

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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

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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

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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)

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

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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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