Terms(5) UCTA

Unfair Contract Terms Act 1977

aims to protect consumers – regulates the use of exemption clauses, does not apply to any other type of unfair term

applies to business liability only

(it would protect you if you bought a car from a dealer as they are a business but it would not protect you from a private purchase)

'in the course of business or occupation of premises for business purchases'

e.g. restaurants, shop, hotel, car park, cinema, theme park

control of terms that exclude;

negligence liability

Section 2

a term excluding liability for death or personal injury is automatically void and ineffective

a term excluding liability for other damage is void and ineffective unless they satisfy a reasonableness test

G. Mitchell v Finney Lock Seeds

The Claimant farmer George Mitchell purchased 30lb of Cabbage seed from the defendants for £192. The claimant planted the seed over 63 Acres and spent many hours of labour on the crops. The cabbage seeds only produced a small green leaf plant not fit for human consumption. The contract contained a clause which limited liability to the price of the seeds. The claimant had lost £60,000 + interest on the defective seeds. The Court of Appeal held that the clause was unreasonable as the buyer would not have been aware of the fault whereas the seller would and would be easy for seller to have insurance for this kind of thing

Woodman v Photo Trade Processing

Clarke J held that the photo shop was liable to Woodman for the loss of the photographs, because other alternative sources of supply were not shown to be available nearby and…