Using cases to illustrate your answer, explain how the Unfair Contract Terms Act 1977 deals with exclusion clauses and consider whether it has been a help or a hindrance to the consumer.

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 Katrina McKenzie

Using cases to illustrate your answer, explain how the Unfair Contract Terms Act 1977 deals with exclusion clauses and consider whether it has been a help or a hindrance to the consumer.

The Unfair Contract Terms Act 1977 (UCT 1977) deals solely with exclusion clauses despite the name of the Act (i.e. the Act does not apply to unfair terms.) However, the Act also covers certain tortuous liability as well as contractual liability. There are three broad areas of control within the Act; the exclusion of liability for negligence, the general control of exclusion clauses that seek to exclude or restrict one party’s liability for breach of contract, and thirdly, control over certain specific contract terms that exclude or restrict liability for breech of goods. Generally, if the Act applies to the clause in question, control may take one of two forms; the clause may be effective only to the extent that it satisfies the test of reasonableness. 

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Liability for negligence is covered under s. 1(1) where it states

  1. failing to take reasonable care in carrying out a contract; or
  2. failing to meet a common law duty of care (i.e., tort); or
  3. failing to meet the duty of care under the Occupiers’ Liability Act 1957.

Section 2 restricts the ability of one party to exclude his liability for negligence. By reference to any contract term or a notice, he cannot exclude or restrict his liability for death or personal injury resulting from negligence.

Section 3 of the UCTA 1977 deals with liability in ...

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