Unfair contract terms Act 1977 PDF

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Unfair contract terms Act 1977

Regulates when limitation and exclusion terms can be used. Consumer rights act of 2015 has taken away some terms. Not really talked about, should be consumer law. There are some areas of contract you can’t restrict or limit. there are other areas you can exclude or limit liability if it is reasonable to do so. Act applies to any contracting except since 2015 where one party is a trader and the other is a consumer. If a business and a business, a consumer and a consumer then the act DOES apply Different bits apply to different parties. Not every bit applies when a party is a consumer Under s2(1) no one acting in the course of a business can exclude or restrict his liability in negligence for death or personal injury by means of a term in a contract or by way of notice. Under s2(2) liability for negligence for any other kind of loss or damage can be excluded provided the term or notice satisfies the requirement of reasonableness. J Spurling v Bradshaw limited – modify effects of L’estrange v Graucob If an incorporated term is so onerous on the party, it is to have a special provision drawing attention to it. Contrary to unfair terms act. Having loads of small prints to make it so they never pay out. Contra proferentem If there is two possible readings, you chose the one that is unfavourable to the party that is putting that term for gain. Courts take a strict approach for people using unfair contract terms Act. Any ambiguity is resolved contrary to the party that is putting that term forward for their own gain. Is the term included? Does the term apply to the act? Then Special rules only necessary for negligence. Contracts are not strict liability if parties have agreed they are not, or because it is in the nature of contracts of that sort that the outcome can’t be agreed (i.e. surgeon can’t guarantee the outcome of surgery). They don’t guarantee outcome but say they will use reasonable skill....