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Unfair Contract Terms Act 1977 Notes

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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

o o

performance of the contract; (b) of any common law duty to take reasonable care or exercise reasonable skill (but not any stricter duty); (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 Actwhether 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


exclude or restrict his liability for death or personal injury resulting from negligence.

o(2) In the case of other loss or damage, 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

oa 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



(a) when himself in breach of contract, exclude or restrict any liability of his in respect of the breach; or


(b) claim to be entitled---

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