Contract Lecture Exclusion Clauses 2 Statutory Controls · Unfair contract terms act 1977 (UCTA) - now applies only to business-to-business contracts · Consumer rights act 2015 - which replaces the unfair terms in consumer contracts regulations 1999 (UTCCR) UTCA 1977: contracts affected · Concerned primarily with 'business liability' · Applies where a business is seeking to exclude or limit its liability to another business. Not to an individual o .... breach of obligations arising o (a) from things done or to be done in the course of a business ... or o (b) from the occupation of premises used for the business purposes of the occupier.' - sec1(3) o Example: a farmer's liability to hikers who cross his land is not a business liability because their access is for recreational purposes, and the farmer is in the business of ploughing fields to grow crops. Whereas a sports center owes that liability to people if it allows people access for recreation because it is the business of recreation o 'business' includes professions, government departments, local government, public authorities - sec 1fi UTCA: Does not apply · Contracts of insurance, any patents, trademarks, copyright or other intellectual property, contracts relating to formation or dissolution of any company UTCA 1977 - Negligence liability . Can the UCTA be used where a liability arises as a result of a negligence of a party? Yes · Sec 1(1) - covers tortious negligence and contractual negligence . Tortious negligence includes liability that has arisen in tort, rather than contract · Contractual negligence includes breach of a contractual duty to exercise reasonable care · Section 1(fi): it is immaterial whether the breach was intentional or whether it arises directly or vicariously Negligence liability: ineffective clauses
· Section 2(1) - a person cannot by reference to any contract term or to a notice given to person generally or to particular persons exclude or restrict his liability for death or personal injury resulting from negligence . There is no choice here, you cannot just exclude liability in this care . NB: This applies to both contract terms and notices. UCTA is not confined to contractual terms but includes non-contractual notices. For example, notice on land that purports to exclude liability for negligence will come under this act where it falls within sec 1(3) Negligent liability: Clauses subject to reasonable test . Sec 2(2) - 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 reasonable.' · Point: clauses that purport to exclude liability for negligence for other losses or damages are valid if they pass the reasonable test Breach of contract · Section 3 regulates attempts to exclude liability for breach of contract · (1) this section applies as between contracting parties where one of them deals on the other's written standard terms of business . (2) as against that party, the other cannot by reference to