Unfair Contract Terms

Question 1

Which act

Answer 1

Unfair Contract Terms Act 1977

Question 2

s2

Answer 2

Negligence liability.
A person cannot by reference to any contract term or to a notice given to persons generally or to particular persons exclude or restrict his liability for death or personal injury resulting from negligence.

In the case of other loss or damage, a person cannot so exclude or restrict his liability for negligence except in so far as the term or notice satisfies the requirement of reasonableness.

Question 3

s3

Answer 3

Breach of an express term of the contract.
Reasonableness test:
Strength of bargaining positions of parties - if bargaining positions of parties are equal, it will be easier to show that exemption clause is reasonable than if a multinational corporation is dealing with a small trader.

Did the customer receive an inducement to agree to the exemption clause e.g. lower price

Question 4

Reasonableness test

Answer 4

Strength of bargaining positions of parties - if bargaining positions of parties are equal, it will be easier to show that exemption clause is reasonable than if a multinational corporation is dealing with a small trader.

Did the customer receive an inducement to agree to the exemption e.g. lower price

Whether the customer knew, or ought reasonably to have known, of the existence and extent of the clause e.g. previous dealings

Whether goods were manufactured to the special order of the customer