The Unfair Contract Term Act 1977

Question 1

S2(2)

Answer 1

In the case of other loss or damage, a person cannot exclude liability for negligence except it is reasonable to do so

Question 1

S2(1)

Answer 1

A person can’t exclude liability for death ore personal injury caused by negligence

Question 2

S6(1)

Answer 2

A clause cannot be inserted into a contract which means these elements of the Acts do not apply

Question 3

S11(1) Knowledge Test

Answer 3

Insertion of the terms in the contract must be reasonable in light of what the parties were aware of at the time

Question 4

Smith V Eric S Bush

Answer 4

The clause was not reasonable as the job is to provide accurate valuation reports.

Question 5

S11(2) Factors that need to be considered

Answer 5

1- Bargaining Power
2- Customer given inducement to accept term
3- Customer knew the term
4- Reasonably practical
5- Made or adapted to special order

Question 6

Watford Electronics V Sanderson CFL

Answer 6

This was a reasonable term as the parties has equal bargaining power

Question 7

S11(4) Limitation Clause

Answer 7

1- Resources that D could expect to be available for meeting his liability should it arise
2- How far it was open to D to cover himself by insurance against a successful claim

Question 8

George Mitchell Ltd V Finney Lock Seed Ltd

Answer 8

Clause was not reasonable
1- breach arose from seller’s negligence
2- Seller should have insured against crop failure