| Unfair Contract Terms Act 1977 |
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The Unfair Contract Terms Act 1977 is a British Act Of Parliament ( 1977 , c 50) which regulates Contract s by restricting the operation and Legality of some Contract Terms . It extends to nearly all forms of Contract and one of its most important functions is limiting the applicability of Disclaimer s of Liability . The title is misleasding as it creates Obligation in Tort and Contract . The Terms extend to both actual Contract Terms and notice that are seen to constitute a Contract ual Obligation . The Act renders Terms excluding or limiting Liability ineffective or subject to reasonableness, depending on the nature of the Obligation purported to be excluded and whether the party purporting to exclude or limit business liability, acting against a ''consumer''. It is normally used in conjunction with the Unfair Terms In Consumer Contracts Regulations 1999 ( Statutory Instrument 1999 No. 2083),as amended by the Unfair Terms in Consumer Contracts (Amendment) Regulations 2001 ( Statutory Instrument 2001 No. 1186) which merely further defined a 'Financial Service Authority' as well as the Sale Of Goods Act 1979 and the Supply Of Goods And Services Act 1982 . TERMS RENDERED INEFFECTIVE Negligence . s2(1), Liability for Negligence occasioning Death or Personal Injury cannot be excluded. Manufacturers' guarantee. s5(1), loss arising from (a) defective Goods or (b) Negligence of Distributor ; cannot be excluded where Goods are "of a type ordinarily supplied for private use or consumption. Sale Of Goods
Terms governed by the Consumer Protection Act 1987 . TERMS SUBJECT TO REASONABLNESS Negligence . s2(2), exclusion of Liability for Negligence (other than for Death or Personal Injury ) must satisfy the requirement of ''reasonableness''. '''ed a Standard Form Contract where the other party is a ''consumer''. Exclusion of Breach of the same Contract (s3(2)(a)) or performance of which is substantially or totally different of that which is resonably expected of him (s(3)(b)). Indemnity clauses. s4, A party dealing as a '' Consumer '' cannot Contract to Indemnify a third party on behalf of the other party, except insofar as it satisfies the requirement of ''reasonableness''. Sale Of Goods . s6(3), Implied Terms as to description, quality and Sample ( Sale Of Goods Act 1979 ss 13-15) may only be reasonably excluded where neither party is dealing as a '' Consumer ''. Misrepresentation . s8, substitutes the Misrepresentation Act 1967 s3. Under that post-1979 section, an exclusion of liability for Misrepresentation must be satisfy the requirement of reasonableness. DEFINITION OF CONSUMER AND BUSINESS Business. s 1(3), The Act only applies to "liability for breach of obligations or duties arising (a) from things done or to be done by a person in the course of a business (whether his own business or another's); or (b) from the occupation of premises used for business purposes of the occupier". s14, Includes any government department. Consumer. s 12As amended by the Sale And Supply Of Goods To Consumers Regulations 2002 , A party deals as a consumer if
DEFINITION OF REASONABLENESS Section 11 provides some guidance but most development has been in common law Schedule 2 gives guidelines specifically to ss 6(3), 7(3), 7(4). Common Law
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