Unfair Contract Terms

Topics: Contract / Pages: 7 (1613 words) / Published: Aug 21st, 2013
UNFAIR CONTRACT TERMS ACT
Section 1
(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.
Section 2
(1) A person cannot by reference to any contract term or to a notice given to persons generally or to particular persons exclude or restrict his liability for death or personal injury resulting from negligence.

(2) In the case of other loss or damage, a person cannot so exclude or restrict his liability for negligence except in so far as the term or notice satisfies the requirement of reasonableness.

Section 3
(1) This section applies as between contracting parties where one of them deals as consumer or on the other’s written standard terms of business.
(2) As against that party, the other cannot by reference to any contract term —
(a) when himself in breach of contract, exclude or restrict any liability of his in respect of the breach; or
(b) claim to be entitled —
(i) to render a contractual performance substantially different from that which was reasonably expected of him; or
(ii) in respect of the whole or any part of his contractual obligation, to render no performance at all, except in so far as (in any of the cases mentioned in this subsection) the contract term satisfies the requirement of reasonableness.

Section 6
(1) Liability for breach of the obligations arising from — (a) Section 12 of the Sale of Goods Act [Cap. 393] (seller’s implied undertakings as to title, etc.) cannot be excluded or restricted by reference to any contract term.
(Stolen ipad sold at Sim Lim: if the seller trys to have an exclusion clause, saying that section 12 is here by excluded, section 6 say it will be not valid. Liability from

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