Unfair Contract Terms Act 1977

The Unfair Contract Terms Act 1977 is a UK law that regulates the use of exclusion clauses and limitation of liability clauses in contracts. It aims to prevent parties from including unfair terms in contracts that limit or exclude their liability to the other party. The Act applies to both business contracts and consumer contracts. The key provisions of the Act include:

Exclusion clauses: The Act sets out rules for the use of exclusion clauses in contracts, which are clauses that exclude or limit liability for certain types of loss or damage. The Act provides that such clauses will be unenforceable if they are deemed to be unfair or unreasonable.

Unfair terms: The Act provides a list of terms that may be considered unfair, such as terms that exclude or restrict liability for death or personal injury resulting from negligence, or terms that attempt to limit the consumer's statutory rights.

Notice requirements: The Act requires that any exclusion or limitation clause must be brought to the attention of the other party before the contract is made. This means that the clause must be clearly stated and not hidden in the small print.

Reasonableness: The Act provides that any exclusion or limitation clause will only be enforceable if it is reasonable in the circumstances. The court will consider a range of factors in determining reasonableness, such as the bargaining power of the parties, the nature of the transaction, and the extent of the liability being excluded or limited.
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