Parliament of the United Kingdom |
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Long title | ... |
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Statute book chapter | 1977 c 50 |
Territorial extent | England and Wales; Scotland; Northern Ireland |
Dates | |
Royal Assent | 1977 |
Status: Amended | |
Text of statute as originally enacted | |
Official text of the statute as amended and in force today within the United Kingdom, from the UK Statute Law Database |
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 both actual contract terms and notice that are seen to constitute a contractual obligation.
The Act renders terms excluding or limiting liability ineffective or subject to reasonableness, depending on the nature of the obligation purported to be excluded and whether the party purporting to exclude or limit business liability, acting against a consumer.
It is normally used in conjunction with the Unfair Terms in Consumer Contracts Regulations 1999 (Statutory Instrument 1999 No. 2083),[1] as well as the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982.
The Law Commission and the Scottish Law Commission have recommended that the Unfair Terms in Consumer Contracts Regulations 1999 and the Unfair Contract Terms Act 1977 should be replaced by a more unified and coherent regime.[2]
Contents |
Negligence. s2(1), liability for negligence occasioning death or personal injury cannot be excluded.
Manufacturers' guarantee. s5(1), loss arising from (a) defective goods or (b) negligence of distributor; cannot be excluded where goods are "of a type ordinarily supplied for private use or consumption."
Sale of Goods
Terms governed by the Consumer Protection Act 1987.
They are also governed (since 2007) by the Occupiers Liability Act 1984.
Negligence. s2(2), exclusion of liability for negligence other than for death or personal injury must satisfy the requirement of reasonableness.
Contractual Liability. s3, This applies against a party that drafted a standard form contract where the other party is a consumer. Exclusion of breach of the same contract (s3(2)(a)) or performance of which is substantially or totally different of that which is reasonably expected of him (s(3)(b)).
Indemnity clauses. s4, A party dealing as a consumer cannot contract to indemnify a third party on behalf of the other party, except insofar as it satisfies the requirement of reasonableness.
Sale of Goods. s6(3), Implied terms as to description, quality and sample (Sale of Goods Act 1979 ss 13-15) may only be reasonably excluded where neither party is dealing as a consumer.
Misrepresentation. s8, substitutes the Misrepresentation Act 1967 s3. Under that post-1979 section, an exclusion of liability for misrepresentation must satisfy the requirement of reasonableness.
Business. s 1(3), The Act only applies to "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". s14, Includes any government department.
Consumer. s 12,[3] A party deals as a consumer if
Section 11 provides some guidance but most development has been in common law
Schedule 2 gives guidelines specifically to ss 6(3), 7(3), 7(4).
Common Law
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