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Contents

Legislation
Unfair Contract Terms Act 1977

Crossheading Avoidence of liability for negligence, breach of contract, etc.

  • Section 2 Negligence liability.
  • Section 3 Liability arising in contract.
  • Section 4 Unreasonable indemnity clauses.
  1. Avoidence of liability for negligence, breach of contract, etc.
  2. Liability arising in contract.

Section 3 | Liability arising in contract.

From legislation.gov.uk

(1)This section applies as between contracting parties where one of them deals ... on the other’s written standard terms of business.F1

(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 above in this subsection) the contract term satisfies the requirement of reasonableness.

(3)This section does not apply to a term in a consumer contract (but see the provision made about such contracts in ).F2

Notes

  1. F1

    Words in omitted (1.10.2015 for specified purposes, 1.10.2016 in so far as not already in force) by virtue of , s. 100(5), Sch. 4 para. 5(2); S.I. 2015/1630, arts. 3(g), 4(c) (with art. 6(1)(2))

  2. F2

    S. 3(3) inserted (1.10.2015 for specified purposes, 1.10.2016 in so far as not already in force) by , s. 100(5), Sch. 4 para. 5(3); S.I. 2015/1630, arts. 3(g), 4(c) (with art. 6(1)(2))

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