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(Original Enactment: U.K. 1977, c. 50)


(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).

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…...

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