Legislative control of terms UCTA Flashcards
What contracts do UCTA and CRA regulate in the UK?
UCTA targets B2B contracts focusing on exemption clauses, while CRA covers B2C contracts, protecting against unfair terms.
How do UCTA and CRA differ in their scope?
UCTA applies to B2B contracts with exemption clauses. CRA deals with B2C agreements and a broader range of unfair terms.
What key sections in UCTA review exemption clauses?
Section 2 addresses liability for negligence, and Section 3 pertains to liability for breach of contract under standard business terms.
What is the “reasonableness test” in UCTA? (Where is this specified)
Section 11 and Schedule 2 outline factors for assessing term fairness, including bargaining power and term awareness.
‘the term shall have been a fair and reasonable one to be included having regard to the circumstances which were, or ought reasonably to have been, known to or in the contemplation of the parties when the contract was made.’
How does UCTA determine the validity of terms?
Through the reasonableness test under section 11, considering factors like bargaining power and term awareness.
What illustrates the courts’ application of UCTA’s reasonableness test?
Cases like Stewart Gill Ltd v Horatio Myer & Co Ltd and Bates v Post Office (No 3) illustrate the courts’ approach to applying the reasonableness test, showing deference to the wide discretionary powers of the trial judge.
Stag Line Ltd v Tyne Ship Repair Group Ltd (The Zinnia) and St Albans City DC v International Computers show judicial discretion in applying the test.
