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Unfair Contract Terms (Exclusion Clauses (Disallowed Clauses (Liability…
Unfair Contract Terms
Exclusion Clauses
Exempt from liability
Generally lawful if expressly made (L'Estrange v Graucob)
UCTA 1977 and CRA 2015 seek to protect weaker parties
Is the clause a term?
Does the clause cover the breach?
Is the term reasonable (UCTA) or fair (CRA)?
Disallowed Clauses
Liability for death or injury caused by negligence
Liability for breach of statutory implied terms as to title (e.g. right to sell)
Liability for breach of statutory implied terms as to description and quality
Reasonable Test
Reasonable in circumstances
Burden of proof on person claiming it is reasonable
Bargaining position of parties
Buyer's knowledge of the extent of the term
Inducements to agree to the term
Fairness Test
Not contrary to good faith
Don't cause significant imbalance in rights and obligations to the consumer's deteriment