# Unfair Contract Terms Act 1977

URL: https://consilena.com/coverage/laws/stat_uk_ukpga_1977_50

- Jurisdiction: United Kingdom
- Type: Act
- Identifier: ukpga/1977/50
- Current as of: 1 October 2016
- Provisions: 28
- Official text: https://www.legislation.gov.uk/ukpga/1977/50
- Licence: [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/)
- Attribution: Contains public sector information licensed under the Open Government Licence v3.0.

> The library is a research copy. Check the official source before relying on a provision: the text published there, not the copy in Consilena, is the law.

## Provisions

### PART I – AMENDMENT OF LAW FOR ENGLAND AND WALES AND NORTHERN IRELAND

- **s. 1 Scope of Part I**: (1) For the purposes of this Part of this Act, “negligence” means the breach— (a) of any obligation, arising from the express or implied terms of a contract…
- **s. 2 Negligence liability**: (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…
- **s. 3 Liability arising in contract**: (1) This section applies as between contracting parties where one of them deals ... on the other’s written standard terms of business. (2) As against that…
- **s. 6 Sale and hire purchase**: (1) Liability for breach of the obligations arising from— (a) section 12 of the Sale of Goods Act 1979(seller’s implied undertakings as to title, etc.); (b)…
- **s. 7 Miscellaneous contracts under which goods pass**: (1) Where the possession or ownership of goods passes under or in pursuance of a contract not governed by the law of sale of goods or hire-purchase…
- **s. 8 Misrepresentation**: (1) In the Misrepresentation Act 1967, the following is substituted for section 3— Avoidance of provision excluding liability for misrepresentation. 3 If a…
- **s. 10 Evasion by means of secondary contract**: A person is not bound by any contract term prejudicing or taking away rights of his which arise under, or in connection with the performance of, another…
- **s. 11 The “reasonableness” test**: (1) In relation to a contract term, the requirement of reasonableness for the purposes of this Part of this Act, section 3 of the Misrepresentation Act 1967…
- **s. 13 Varieties of exemption clause**: (1) To the extent that this Part of this Act prevents the exclusion or restriction of any liability it also prevents— (a) making the liability or its…
- **s. 14 Interpretation of Part I**: In this Part of this Act— “business” includes a profession and the activities of any government department or local or public authority; “consumer contract”…

### PART II – AMENDMENT OF LAW FOR SCOTLAND

- **s. 15 Scope of Part II**: (1) This Part of this Act … is subject to Part III of this Act and does not affect the validity, of any discharge or indemnity given by a person in…
- **s. 16 Liability for breach of duty**: (1) Subject to subsection (1A) below, Where a term of a contract, or a provision of a notice given to persons generally or to particular persons, purports to…
- **s. 17 Control of unreasonable exemptions in ... standard form contracts**: (1) Any term of a contract which is ... a standard form contract shall have no effect for the purpose of enabling a party to the contract— (a) who is in breach…
- **s. 20 Obligations implied by law in sale and hire-purchase contracts**: (1) Any term of a contract which purports to exclude or restrict liability for breach of the obligations arising from— (a) section 12 of the Sale of Goods Act…
- **s. 21 Obligations implied by law in other contracts for the supply of goods**: (1) Any term of a contract to which this section applies purporting to exclude or restrict liability for breach of an obligationsuch as is referred to in…
- **s. 23 Evasion by means of secondary contract**: Any term of any contract shall be void which purports to exclude or restrict, or has the effect of excluding or restricting— (a) the exercise, by a party to…
- **s. 24 The “reasonableness” test**: (1) In determining for the purposes of this Part of this Act whether it was fair and reasonable to incorporate a term in a contract, regard shall be had only…
- **s. 25 Interpretation of Part II**: (1) In this Part of this Act— “breach of duty” means the breach — of any obligation, arising from the express or implied terms of a contract, to take…

### PART III – PROVISIONS APPLYING TO WHOLE OF UNITED KINGDOM

- **s. 26 International supply contracts**: (1) The limits imposed by this Act on the extent to which a person may exclude or restrict liability by reference to a contract term do not apply to liability…
- **s. 27 Choice of law clauses**: (1) Where the law applicable to a contract is the law of any part of the United Kingdom only by choice of the parties (and apart from that choice would be the…
- **s. 29 Saving for other relevant legislation**: (1) Nothing in this Act removes or restricts the effect of, or prevents reliance upon, any contractual provision which— (a) is authorised or required by the…
- **s. 31 Commencement; amendments; repeals**: (1) This Act comes into force on 1st February 1978. (2) Nothing in this Act applies to contracts made before the date on which it comes into force; but subject…
- **s. 32 Citation and extent**: (1) This Act may be cited as the Unfair Contract Terms Act 1977. (2) Part I of this Act extends to England and Wales and to Northern Ireland; but it does not…

### SCHEDULE 1

- **Sch. 1 para. 1**: Sections 2 and 3 of this Act do not extend to— (a) any contract of insurance (including a contract to pay an annuity on human life); (b) any contract so far as…
- **Sch. 1 para. 2**: Section 2(1) extends to— (a) any contract of marine salvage or towage; (b) any charterparty of a ship or hovercraft; and (c) any contract for the carriage of…
- **Sch. 1 para. 3**: Where goods are carried by ship or hovercraft in pursuance of a contract which either— (a) specifies that as the means of carriage over part of the journey to…
- **Sch. 1 para. 4**: Section 2(1) and (2) do not extend to a contract of employment, except in favour of the employee.
- **Sch. 1 para. 5**: Section 2(1) does not affect the validity of any discharge and indemnity given by a person, on or in connection with an award to him of compensation for…

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