Unfair Contract Terms Act 1977
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| Long title | An Act to impose further limits on the extent to which under the law of England and Wales and Northern Ireland civil liability for breach of contract, or for negligence or other breach of duty, can be avoided by means of contract terms and otherwise, and under the law of Scotland civil liability can be avoided by means of contract terms. |
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| Citation | 1977 c 50 |
| Territorial extent | England and Wales; Scotland; Northern Ireland |
| Dates | |
| Royal assent | 1977 |
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Status: Amended
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| Text of statute as originally enacted | |
| Text of the Unfair Contract Terms Act 1977 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk | |
The Unfair Contract Terms Act 1977 (c 50) is an Act of Parliament of the United Kingdom which regulates contracts by restricting the operation and legality of some contract terms. It extends to nearly all forms of contract and one of its most important functions is limiting the applicability of disclaimers of liability. The terms extend to both actual contract terms and notices that are seen to constitute a contractual obligation.
The Act renders terms excluding or limiting liability ineffective or subject to reasonableness, depending on the nature of the obligation purported to be excluded and whether the party purporting to exclude or limit business liability, acting against a consumer.
It is normally used in conjunction with the Unfair Terms in Consumer Contracts Regulations 1999 (Statutory Instrument 1999 No. 2083), as well as the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982.
The Law Commission and the Scottish Law Commission have recommended that the Unfair Terms in Consumer Contracts Regulations 1999 and the Unfair Contract Terms Act 1977 should be replaced by a more unified and coherent regime.
Negligence. s2(1), liability for negligence occasioning death or personal injury cannot be excluded.
Manufacturers' guarantee. s5(1), loss arising from (a) defective goods or (b) negligence of distributor; cannot be excluded where goods are "of a type ordinarily supplied for private use or consumption."
Terms governed by the Consumer Protection Act 1987.
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