COMMERCIAL PRACTICE L4 - Sga & ucta - UCTA TYPES OF LIABILITY

Question 1

What does the Unfair Contract Terms Act 1977 limit? (1)

Answer 1

The extent to which one party to a contract can avoid liability through the use of exclusion / limitation clauses.

Question 2

What does S13 UCTA mean? (3)

Answer 2

That UCTA does not only apply to straightforward exclusion and / or limitation clauses but any clauses which effect is to make it difficult to establish that there is any liability and exclude or restrict the right of a party, or a remedy that it might otherwise be entitled to.

Question 3

What does S2(1) UCTA provide? (1)

Answer 3

Any term in a contract which purports to exclude or limit liability for death or injury caused by negligence is not valid.

Question 4

What does S2(2) UCTA provide? (1)

Answer 4

It permits a term of a contract to exclude or limit liability for negligence only if that term passes the reasonableness test.

Question 5

What does S3 UCTA permit? (1)

Answer 5

A term to exclude or limit liability for breach of contract, where the parties are contracting on the seller’s written standard terms, only if that term passes the reasonableness test.

Question 6

What does S6(1A) UCTA permit? (1)

Answer 6

A term of a contract to exclude or limit liability for S13(1), S14(2) and S14(3) SGA 1979 if it passes the reasonableness test.