Question 9: The Nature/effectivness Of Exclusion/exemption Clauses Flashcards
(12 cards)
What is an exclusion clause
A term that limits or excludes liability for breaches
Why are exclusion clauses controversial
- they can unfairly protect powerful parties in unequal contracts
What does UCTA 1977 stand for
Unfair contract terms act 1977
What does UCTA 1977 do
Controls exclusion clauses in business-to-business contracts
When is an exclusion clause automatically void under UCTA 1977
When it tries to exclude liability for death or personal injury due to negligence
What test does UCTA apply to other exclusion clauses
The reasonableness test
What law protects consumers from unfair terms
CRA 2015
What does CRA 2015 say about unfair terms
Unfair terms (including exclusion clauses) are not binding on consumers
What makes a term ‘unfair’ under CRA 2015
- If it causes a significant imbalance against the consumer
What is the ‘incorporation rule’ for exclusion clauses
A clause must be clearly brought to the other parties attention
What is the ‘construction rule’ for exclusion clauses
Clauses must be clearly worded and interpreted strictly
How effective is the legal control of exclusion clauses
Mixed - law provides protection, but enforcement can be complex
