Ucta

In: Other Topics

Submitted By eaglekille91
Words 3736
Pages 15
search-advanced-form-portlet

1 of 7

http://www.lawnet.sg/lawnet/group/lawnet/legal-research/advanced-se...

UNFAIR CONTRACT TERMS ACT
(CHAPTER 396)
(Original Enactment: U.K. 1977, c. 50)

REVISED EDITION 1994

(20th May 1994)

An Act to impose further limits on the extent to which civil liability for breach of contract, or for negligence or other breach of duty, can be avoided by means of contract terms and otherwise.
[12th November 1993 *]
*

Date when this Act was made applicable by the Application of English Law Act (Cap. 7A).

PART I
Introductory
Scope of this Part
1. —(1) For the purposes of this Part, “negligence” means the breach —
( a) of any obligation, arising from the express or implied terms of a contract, to take reasonable care or exercise reasonable skill in the performance of the contract; or
( b) of any common law duty to take reasonable care or exercise reasonable skill (but not any stricter duty) (2) This Part is subject to Part III; and in relation to contracts, the operation of sections 2 to 4 and 7 is subject to the exceptions made by the First Schedule.
(3) In the case of both contract and tort, sections 2 to 7 apply (except where the contrary is stated in section 6(4)) only to business liability, that is liability for breach of obligations or duties arising from things done or to be done by a person in the course of a business (whether his own business or another’s), and references to liability are to be read accordingly.
(4) In relation to any breach of duty or obligation, it is immaterial for any purpose of this Part whether the breach was inadvertent or intentional, or whether liability for it arises directly or vicariously.
Avoidance of liability for negligence, breach of contract, etc.
Negligence liability
2. —(1) A person cannot by reference to any contract term or to a notice given to persons…...

Similar Documents

Common Law

...traders must sell goods that are as described and of satisfactory quality. If consumers discover that products do not meet these requirements they can reject them and ask for their money back providing they do so quickly”. In this case, Keith did not supply plaster with the satisfy quality so Tuan can breach the contract without any responsibilities. * For the fairness of restraint, it is added into a contract to limit one party's liability for breach of contract. The Unfair Contract Terms Act 1977 (UCTA) and the Unfair Terms in Consumer Contracts Regulations 1999 will test valid of restraint. In this case, the restraints of both parties were equal. Tuan does not allow to buy from other suppliers while Keith had to supply the goods with satisfy quality. In fact, Keith did not do that so Tuan can breach the contract. Conclusion: the contract between Keith and Tuan was a valid contract and as the terms of contract it contains the exemption clause. However, according to the UCTA and Sale of goods Act, Keith had breached the contract first by supplying the plaster with poor quality. Therefore, Tuan can reject the contract without pay for the 220 tones which he ordered or take any responsibility. Besides, Tuan also can buy plaster from Fred with the price at $4,500 per ton in the future. 2b. Apply and analyze the law on standard form contracts * The standard form contract is a pre-prepared contract with all the terms have already set. In standard form contract,......

Words: 3964 - Pages: 16

Biz Law Exemption Clause

...situation between him and Grace. He must show that his wife left him because he spent a large sum of money on the less valuable Storm, or he could not concentrate on work and thus lost his job because of the stress and distraction resulted from the discovery. If he is able to do so, Will can then be awarded a sum of money in compensation for his loss. 1.5 Exemption Clause The presence of the exemption clauses in the contract is meant to protect Grace from liability and make it hard for Will to take legal actions against her. However, it is possible for Will to show that the exemption clauses are invalid in this case. We can do this by examining their incorporation, construction and also by referring to the Unfair Contract Terms Act (UCTA). 1.5.1 Incorporation by signature The general rule for written contracts is once a contract is signed by a party, the party is bound to all terms in the document regardless of whether he has read them or not. This is illustrated in the case of L’Estrange v F Graucob LTD (1934), where the plaintiff was bound by the exemption clause in the contract even though it was “in regrettably small print” and the plaintiff had not read it. Since there was a signed written contract, it is very clear that there was implication by signature. Will is bound by all the terms and clauses in the contract. Hence, the exemption clause holds through incorporation by signature. We will now move on to analyse the exemption clause through......

Words: 4699 - Pages: 19

Law Contract

...for negligence can be made under the principle laid down in Hedley Byrne v Heller and Partners Ltd (1964). Innocent misrepresentation C may be able to rescind the contract but the court has the discretion to grant damages instead of rescission under S2(2) of the Misrepresentation Act 1967. BEA1003/BEA1003A 35 Contract VITIATING FACTORS Remember: Rescission is an equitable remedy and the right to rescind can be lost, for example where C has affirmed the contract or delayed in bringing an action for rescission Long v Lloyd (1958), Leaf v International Gallery (1950). Salisbury Cathedral by John Constable The Unfair Contract Terms Act 1977 (UCTA) S8 provides any term in a contract purporting to exclude liability for misrepresentation will only be valid if it satisfies the “reasonableness test”. See section on UCTA. BEA1003/BEA1003A 36 Contract VITIATING FACTORS 2. MISTAKE: The general rule is that mistake does not affect the validity of a contract – caveat emptor (let the buyer beware) applies. However, some mistakes are so fundamental that the courts have decided that there is no true consent between the parties and declare such contracts void. A mistake can only negate consent if it induced the mistaken party to enter into the contract and the mistake precedes the contract Amalgamated Investment and Property C. Ltd v John Walker and Sons Ltd (1977). BEA1003/BEA1003A 37 Contract VITIATING FACTORS Types of mistake: i.Documents......

Words: 6626 - Pages: 27

English

...that the supply of telephone which required turning to a particular frequencies for two minutes be continued with as it was only a breach of warranty which is a less important term in the contract as the phone is fit for use in UK. [Type text] Page 10 Case study 5: Grace and Office Supplies Ltd: Test of Exclusion clause on fundamental breach. The validity of the exclusion clause introduced by Office Supplies Ltd will be tested in this case in other to ascertain whether the company can rely on it against injuries suffered by Grace and by the application of Common law rule to find out if it is incorporated and drafted with words that intends to cover loss and likewise with the Statutory rule test- (Unfair Contract Term Act)UCTA 1977 and UCTA 1999 which may render the contract strictly void except if it is reasonable. Under common law ,an exclusion clause will not be effective unless it is a term of a contract thus it is important to decide whether or not the exclusion clause has been incorporated into the terms of the contract in question. The incorporation of the exclusion clause into a contract takes three(3) forms which includes the following:Signature ‘‘Grace signed the document without reading the exclusion clause.’’ See case of L’Estrange vGraucob(1934) where a Cafe owner bought a vending machine, by signing a contract without reading and this takes away her statutory right under the Sales of Goods Act (1893) and the court held that through her signature ,she......

Words: 4714 - Pages: 19

Psychologie

...řešení konfliktů za účasti facilitátora: 1. vytvoření důvěry, dosažení shody o použití tohoto postupu 2. vytvoření pozitivního naladění 3. stanovení základních zásad 4. definování problému, sbírání informací 5. zdůraznění významu problému a pocitů každého z účastníků sporu 6. pomoc účastníků sporu ve vzájemné rozmluvě 7. ujištění, že účastníci si vzájemně naslouchají 8. vytvoření atmosféry pro společnou práci 9. držení se tématu diskuze 10. pomoc v nalezení spravedlivého, realistického a konkrétního řešení, které mohou přijmout obě strany Strategie řešení konfliktu: • strategie úniková – popírání problému • spolupracující styl – respekt, snaha a úcta zefektivnit práci na společném díle • strategie přizpůsobení se – podřízení se • kompromisní styl – vzájemné ústupky • strategie dohody – vzájemná spolupráce a řešení problému • nežádoucí styl – vyhýbání konfliktům • strategie konfrontace • donucovací styl • konfrontace (W-L) • spolupráce (W-W) • přizpůsobení se (L-W) • vyhýbání se (L-L) • kompromis 17. FAIR PLAY PRAVIDLA PRO ŘEŠENÍ KONFLIKTŮ Pravidla Fair Play - metoda konstruktivní hádky: • každý má právo na stejné časové vstupy • právo říci svůj názor • vyslechnu celý názor protistrany • nezvyšuji hlas, nekřičím ......

Words: 7143 - Pages: 29

Air Aisa

...regulations 1999. The Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs) protect consumers against unfair standard terms in contracts they make with traders. The Office of Fair Trading, together with certain other bodies, can take legal action to prevent the use of such terms. The UTCCRs can protect consumers from terms that reduce their statutory or common law rights and from terms that seek to impose unfair burdens on the consumer over and above the obligations of ordinary rules of law (Office of fair trading, accessed 2009). In addition clauses which are subject to reasonableness and fairness by UCTA obviously only apply if the courts decide it is reasonable for them to do so. The Act gives some guidelines as to the meaning of reasonableness for these purposes and the concept has been interpreted by the courts (Doti Chee, 2009). Section 11(2) refers to Schedule 2 to UCTA, which lays down a number of issues that the court may consider when deciding whether a term is reasonable for the purposes of Sale and Supply of Goods ss.6 and 7 and those points were mentioned above. Furthermore the battle of form should also be analyzed. A problem arises if one party sends a form saying that the contract is made on those terms but the second party accepts by sending a form with their own terms on and stating that the contract is on the second party's terms. The "rule of thumb" here is that the contract will be made on the last set of terms sent. There was a case example of......

Words: 1229 - Pages: 5

Formation of Contract Questions

...consideration and intention to create legal relations. 2. Contents of the contract Terms of the contract Conditions, Warranties, Intermediate terms * “The law should not abandon the intermediate term nor should it use the intermediate term to the exclusion of the condition and warranty. It should instead use the condition/warranty distinction and only when a term is a warranty, adopt the approach taken in the Hong Kong Fir case.” Discuss. * Explain how a term’s status as a condition, warranty or innominate term is determined in the law and discuss whether the innominate term should be retained. Implied terms * Discuss whether the test for implying a term in a contract should be based on reasonableness. Exemption clauses/UCTA * Explain the circumstances in which the court will employ the test of reasonableness under the Unfair Contract Terms Act 1977, using cases to illustrate your answer. * “The presence of the Unfair Contract Terms Act 1977 alongside the Unfair Terms in Consumer Contracts Regulations 1999 creates confusion. They should be replaced by a single statute.” Discuss. * Compare and contrast the provisions of the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations 1999 and consider the merits of retaining only the latter. * “The Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations 1999 should be replaced with a single statute.” Discuss. * “The Unfair......

Words: 959 - Pages: 4

Kurdistan

...* Kızıyordum, söyleniyordum, "Niye yapmıyorsun ödevini!" diyordum. Aramızda sürekli tartışmalar, sürtüşmeler oluşuyordu. Tabii bunun sonucunda bütün aile huzursuz oluyordu. Burada biraz sustu, soluklandı. Sanki hatırlamak istemediği anılar vardı; onların üstesinden gelmeye çalışıyordu. Sonra konuşmaya devam etti: - Ben sizin seminerinizden çıktıktan sonra düşünmeye başladım. "Ben ne biçim babayım," diye kendime sordum. Seminer için geldiğim* İstanbul'dan çalışma yerim olan Kayseri'ye gidinceye kadar düşündüm; otobüste bütün gece düşündüm ve sonra kendi kendime dedim ki, eşimle konuşayım, biz birlikte bir karar alalım. Diyelim ki bu çocuk isterse beş yıl sınıfta kalsın, ama doya doya çocukluğunu yaşasın. - Radikal bir karar!* - Evet, uçta bir karar, ama bu karar içime çok iyi geldi, Hocam. Gerginliğim, üzüntüm gitti, içim rahat etti. Ben eve gelince eşime dedim ki, hadi gel otur, konuşalım. Yemekten sonra oturduk konuştuk, çocuklar yattı biz konuşmaya devam ettik. Seminerde anlatılanları aktardım, böyle böyle böyle diye izah ettim ona ve en nihayet dedim ki, ya benim gönlümden ne geçiyor sana söyleyeyim. Bizim oğlumuz var ya bizim oğlumuz, o isterse beş yıl sınıfta kalsın, ama çocukluğunu yaşasın! Şimdiye kadar onun çocukluğunu yaşamasıyla ile ilgili pek bir çaba göstermedik, bir bilinç göstermedik, oluruna bıraktık. Gel şimdi değiştirelim bunu. - Eşiniz ne dedi? - Hocam biliyor musun ne oldu? - Ne oldu?* - Karım hayretle bana baktı ve dedi ki, "Bu ne biçim seminer......

Words: 1059 - Pages: 5

Law Answer for Contract Law

...the question scenario clearly states that the exclusion clause was incorporated into the contract between Andy and Bash Ltd (and there can be no doubt that it is), it is only necessary to consider the effect of the clause. On the basis of the clear wording, it would appear that the wording of the exclusion clause is sufficiently clear and specific to cover Bash Ltd’s negligence. As a consequence, it only remains to consider how the legislation governing exclusion clauses would be likely to deal with this particular clause in the context of the question. The Unfair Contract Terms Act 1977 (UCTA) is the original statutory attempt to control exclusion clauses. The original Unfair Terms in Consumer Contracts Regulations (UTCCR) were enacted in 1994 to implement the European Unfair Contract Terms Directive and were subsequently replaced by the current regulations in 1999. Section 2(1) of UCTA provides an absolute prohibition on exemption clauses in relation to liability in negligence resulting in death or injury. It is therefore apparent that Bash Ltd cannot avoid responsibility for the injury sustained by Andy and will be liable for the injuries and the consequential loss he suffered. Section 2 also provides that any exemption clauses relating to liability for other damage caused by negligence will only be enforced to the extent that they satisfy the ‘requirement of reasonableness’; and s.11 provides that the requirement of reasonableness means ‘fair and reasonable .........

Words: 483 - Pages: 2

Business World

...it can be concluded that Ellie Wharton, Tim Cumming, Rachel Davies and all the other offended consumers, are in the right to claim to the company a free replacement and a recompense for the kitchens damages. REFERENCE * Denis Keenan & Sarah Riches, Business law, Eighth edition part 3-business transaction, chapters 8/9/10 * BBC One watchdog http://www.bbc.co.uk/programmes/b006mg74/features/indesit-hotpoint-exploding-washing-machine (10th of May,14.35pm/ 12th of May, 9.27am) * Types of contract, legal definitions http://legal-dictionary.thefreedictionary.com/Types+of+Contracts (10th of may,15.20pm) * UK official legislation website, Soga Act http://www.legislation.gov.uk/ukpga/1979/54 * UK official legislation, UCTA website, http://www.legislation.gov.uk/ukpga/1977/50 (10th of may, 19.40pm) * How to exclude liability http://www.lexology.com/library/detail.aspx?g=d0ad6fc9-91a8-4b77-8187-b1df969f10e6 (13th of May 11.57am) * Legal news and guidance, http://www.out-law.com/en/topics/projects--construction/construction-claims/exclusion-and-limitation-clauses/ (13th of May 14.12pm)...

Words: 1088 - Pages: 5

Exclusion of Liability Clauses

...Exclusion of liability clauses are designed to exempt a contracting party for breach of contract or negligence. If exclusion clauses are upheld in court the defendant has a complete defence for his action, for them to operate they must cover the breach. The individual wishing to rely on the clause must show that the clause formed part of the contract, either by notice, signature or a course of dealing. Exclusion clauses will only be valid if they are reasonable in accordance with the Unfair Contract Terms Act 1977 (UCTA) (CEM 2013), personal injury and death cannot be excluded at all. Limitation of liability clauses are designed to limit the liability of a contracting party when a contract is breached to a pre-agreed amount. When such a clause is upheld in court for breach of contract, the party that is relying on the clause cannot be held liable for a figure that exceeds the stated amount, although the amount could be less if the claimant’s loss is less. Such a clause legally lessens the risk of a liability which will typically be a debt or obligation. Businesses may attempt to use disclaimers on products they sell to avoid liability in situations like customer misuse, however warranty laws may override any disclaimers of liability placed on products. Fluctuation clause contracts are a way of dealing with inflation on large projects that may last a considerable time (Aeberli 2002). A fluctuation clause has the legal effect that in the event of a specified cost increase the...

Words: 327 - Pages: 2

Terms of Contracts

...Terms and Exemption Clauses 1) Parol Evidence 2) Terms and Representation 3) Implied Terms a) In Fact b) In Law c) In Statute d) By Custom 4) Classification of Terms 5) Exemption Clauses: Incorporation a) By Signature b) By Notice c) By Previous Course of Dealing 6) Construction a) Contra Proferentem Rule b) Rule in Cases of Negligence Liability c) Doctrine of Fundamental Breach 7) Unfair Contract Terms Act (UCTA) a) Liability in Negligence b) Liability in Contract c) Sale and Supply of Goods d) Test of Reasonableness Parol Evidence Rule a) No extrinsic evidence (such as any oral agreement or statement) is admissible to add to, vary or contradict a written instrument or contract. b) Exceptions c) Contract was the result of mistake, a lack of consideration, or of misrepresentation d) Mistake in the written contract i) Joscelyne v Nissen (1970) e) Contract has not yet come into existence or that it is no longer in operation i) Maybe due to the occurrence or non-occurrence of a certain event by a certain date, which has been accepted verbally ii) Pym v Campbell (1856) iii) Obligation to buy shares in an invention was conditional upon a 3rd party approving the invention, of which the approval had not been received. f) Where extrinsic evidence demonstrates that a particular custom of trade must be implied to, and therefore become a part of, the written......

Words: 6952 - Pages: 28

Terms of Contract

...contracts. We conclude from that, that Deborah shall have to accede to the terms of exoneration if they happen to claim in this matter even if they are biased or disobliging. The procedures steering the absolution section in contracts incriminating the sale of goods can be obtained via the statutory instrument of the Unfair Contract Terms Act 1977 which venture to bargain with the banishment or restriction of incrimination for violation of the implied obligated terms regarding to the sale or allot of goods. This is cited in part 16 of the UCTA 1977 which absolutes and legal responsibility for the encroachment of those tacit terms of ss13-15 of the SGA 1979. However, the encumbrance is non-identical based on whether the individual negotiates as a consumer. The UCTA 1977 s. 6 (2) (a) declare that when an individual negotiates as a consumer, legal responsibility for the encroachment of those tacit terms shall not be excused. Also in s. 6 (3) UCTA 1977, where the individual is not a consumer, legal responsibility for the violation of tacit terms can be exempted on the precondition that the clause fulfil the essential of judiciousness. 6. BIBLIOGRAPHY 1) E-lawresources.co.uk,. 'Terms Implied By Common Law'. N.p., 2015. Web. 20 Mar. 2015 2) E-lawresources.co.uk,. 'Sale Of Goods Act 1979 And Supply Of Goods And Services Act 1982'. N.p., 2015. Web. 25 Mar. 2015 3) Pearne.co.uk,. 'What Terms Are Implied By Law In Sale Of Goods Contracts? | Pearne & Co'. N.p., 2015.......

Words: 1932 - Pages: 8

Exclusion and Limiting Clauses

...with the other. This became elevated to a rule of law. However, the rule of law approach was rejected in UGS Finance v National Mortgage Bank of Greece [1964] 1 Lloyd's Rep 446, on the basis that it conflicted with freedom of contract and the intention of the parties. The question of whether a clause could exclude liability for a fundamental breach was held to be a question of construction. The UGS case was unanimously approved by the House of Lords in the Suisse Atlantique case [1967] 1 AC 361, and Photo Production Ltd v Securicor Transport [1980] AC 827. C. THE UNFAIR CONTRACT TERMS ACT 1977 The basic purpose of UCTA 1977 is to restrict the extent to which liability in a contract can be excluded for breach of contract and negligence, largely by reference to a reasonableness requirement, but in some cases by a specific prohibition. 1. THE SCOPE OF UCTA 1977 The Act does not apply to insurance contracts; the sale of land; contracts relating to companies; the sale of shares; and the carriage of goods by sea (Schedule 1); or to international supply contracts (s26). Business Liability and Dealing as a Consumer Most of the provisions of the Act apply only to what is termed "business liability". This is defined by s1(3) as liability arising from things done by a person in the course of a business or from the occupation of business premises. The exceptions are ss6 and 7 where the Act also applies to private contracts. The Act gives the greatest protection to......

Words: 2419 - Pages: 10

Koncepcia 7s „Hľadanie Dokonalosti“

...a realizovať ho. Je to efektívnejšie, ako nechať 250 technikov a predajcov pracovať samých na vývoji nového výrobku. 2. Blízko k zákazníkovi Poskytujú bezkonkurenčnú akosť, servis a spoľahlivosť ( IBM (. Ich výrobky sa odlišujú od väčšiny výrobkov rovnakého druhu ( Frito-Lay ) Mnoho inovatívnych spoločností získava nápady na výrobky priamo od zákazníkov. 3. Autonómia a podnikavosť Inovatívne spoločnosti si pestujú mnoho vodcov a inovátorov. 3M: Nebránia zamestnancom, aby boli tvoriví. Podnik pripomína voľnú sieť laboratórií a malých miestností s horlivo pracujúcimi vynálezcami. 4. Produktivita prostredníctvom ľudí Pracovníci sú základný zdroj akosti a zvyšovania produktivity. IBM: Dôležitá je úcta k jednotlivcovi. Texas Instruments: V každom pracovníkovi vidia zdroj nápadov, nielen pár rúk. 5. Riadenie v priamom dotyku, dôraz na hodnoty Hewlett Packard: Vedenie robí pochôdzky v prevádzkárňach. McDonald´s: Pravidelne navštevujú predajne firmy a hodnotia akosť, služby a čistotu. 6. Rob, čomu rozumieš Väčšiu šancu majú spoločnosti, ktoré sa držia oblasti podnikania, ktorú poznajú. Procter ( Gamble: Neopúšťajú svoje základné zameranie. Snažia sa nebyť konglomerátom. Johnson ( Johnson: Bývalý prezident firmy Robert W. Johnson povedal: “Nikdy sa nesnažte získať podnik, ktorý neviete riadiť.“ 7. Jednoduchá forma Žiadna z veľkých spoločností, ktoré Peters a Waterman skúmali, nemala formálnu maticovú......

Words: 1286 - Pages: 6