Business-business exclusion clauses

Question 1

What are business-business exclusion clauses controlled by?

Answer 1

Unfair Contract Terms Act 1977

Question 2

Unfair Contract Terms Act 1977

Answer 2

Controls business-business exclusion clauses

Question 3

S.3

Answer 3

If a party wants to rely on any terms, they must show that they are reasonable in all the circumstances

Question 4

If a party wants to rely on any terms, they must show that they are reasonable in all the circumstances

Answer 4

S.3

Question 5

What sections determine what is reasonable?

Answer 5

• S.11(1)
• S.11(2)
• S.11(4)

Question 6

• S.11(1)
• S.11(2)
• S.11(4)

Answer 6

Sections that determine what is reasonable

Question 7

S.11(1)

Answer 7

Exclusion clause must be reasonable based on the knowledge of the parties at the time the contract was formed

Question 8

Exclusion clause must be reasonable based on the knowledge of the parties at the time the contract was formed

Answer 8

S.11(1)

Question 9

Case that demonstrates S.11(1)

Answer 9

Smith v Eric S Bush 1990

Question 10

Smith v Eric S Bush 1990

Answer 10

Demonstrates S.11(1)

Question 11

S.11(2)

Answer 11

Schedule 2 criteria must be considered

Question 12

Schedule 2 criteria must be considered

Answer 12

S.11(2)

Question 13

Case that demonstrates S.11(2)

Answer 13

Watford Electronics 2001

Question 14

Watford Electronics 2001

Answer 14

Demonstrates S.11(2)

Question 15

Schedule 2 criteria

Answer 15

• Strength of bargaining power
• Inducements to enter the contract
• Knowledge of the exclusion clause
• Whether meeting that condition was practical

Question 16

• Strength of bargaining power
• Inducements to enter the contract
• Knowledge of the exclusion clause
• Whether meeting that condition was practical

Answer 16

Schedule 2 criteria

Question 17

Considers how able D was to cover themselves by insurance or other means in the case of any claim. (For limitation clauses only)

Answer 17

S.11(4)

Question 18

S.11(4)

Answer 18

Considers how able D was to cover themselves by insurance or other means in the case of any claim. (For limitation clauses only)

Question 19

Case that demonstrates S.11(4)

Answer 19

George Mitchell 1983

Question 20

George Mitchell 1983

Answer 20

Demonstrates S.11(4)

Question 21

S.2(1)

Answer 21

cannot exclude liability for death or personal injury caused by negligence

Question 22

cannot exclude liability for death or personal injury caused by negligence

Answer 22

S.2(1)

Question 23

cannot exclude the implied terms from the Sale of Goods Act 1979 that they own title to the goods

Answer 23

S.6(1)

Question 24

S.6(1)

Answer 24

cannot exclude the implied terms from the Sale of Goods Act 1979 that they own title to the goods

Question 25

Subject to the reasonable test, businesses can exclude liabilty for what?

Answer 25

• carrying out a service with care and skill and completing the service within a set time
• liability for all other express or implied terms