Exclusion Clauses (statutory)

Question 1

Under unfair contract terms act 1977 what cannot be enforced ?

Answer 1

S.2.1 : liability of death exclusion
S.2.2 exclude liability for negligence or financial loss
S.6.1 clause cannot be inserted into contract

Question 2

What is the first test for reasonableness (s.3)

Answer 2

S.11 Knowledge test (both parties aware)

Case : smith v Eric s. Bush

Question 3

What is the second test for establishing reasonableness s.3?

Answer 3

S.11.2 : Factors to be be considered

• Power/strength
• Inducement to accept term
• knew off term
• reasonably practicable
• special order of customer

Case : Watford electronics ltd v Sanderson cfl ltd

Question 4

What is the third test s.3

Answer 4

S.11(4) limitation clauses
1. Resources available for meeting liability should it arise
2. Covered by insurance against successful claim

Case : George Mitchell Ltd v Tunney lock seeds Ltd

Question 5

Under consumer rights act 2015 what is prohibited under s.31 sale of goods?

Answer 5

S.9 : satisfactory quality

S.10 : fit for purpose

S.11: as described

Question 6

Under consumer rights act 2015 under s.57 for sale of services whats prohibited

Answer 6

S.49 :

Question 7

What is the name of the act for business - business in statute exclusion clauses?

Answer 7

The Unfair Contract Terms Act 1977

Question 8

What is the purpose of the Unfair Contract Terms Act 1977?

Answer 8

• Provides protection against exclusion clauses in non-consumer contracts
• Establishes a test of reasonableness