Exclusion Clauses and Unfair Contract Terms

Transcription

1 Exclusion Clauses and Unfair Contract Terms Eleventh Edition Richard Lawson LLM PhD SWEET & MAXWELL THOMSON REUTERS

2 TABLE OF CONTENTS PAGE D edication...v F orew ord... vii Table o f C a ses...xix Table o f Statutes...xxxix Table o f Statutory Instrum ents... xliii PART 1 Judicial Control PARA 1. INCORPORATION OF EXCLUSION CLAUSES In t r o d u c t io n C o n t r a c t u a l d o c u m e n t s In c o r po r a t io n e st a b l ish in g th e in t e n t io n o f t h e pa r t ie s R e a so n a b l e su f f ic ie n c y o f n o t ic e L o c a tio n o f n o t if ic a t io n P o s s ib l e il l e g a l it y D is a b l e d p a r t ie s P r o v id in g c o p ie s U n a v a ilability o f c o p ie s W h e r e th e c l a u s e is u n u s u a l O n e r o u s c l a u s e s in c o n s u m e r c o n t r a c t s T h e e f f e c t o f s ig n a t u r e INTERFOTO ANALYSED INTERFOTO AND ARBITRATION CLAUSES

3 X CONTENTS W hen t h e t e r m s to b e in c o r po r a ted d o n o t y e t e x i s t W h e n a c c e p t a n c e c a n n o t be a v o id e d At o r b e f o r e th e tim e o f c o n t r a c t in g T h e c o u r s e o f d e a l in g T h e c o m m o n u n d e r sta n d in g o f t h e pa r t ie s In c o r po r a tio n by c o n d u c t S ig n a t u r e F r a u d an d m is r e p r e s e n t a t io n N on est factum INTERPRETATION OF EXCLUSION CLAUSES T he g e n e r a l a p pr o a c h t o in t e r p r e t a t io n C ontractual in te n t T he contra proferentem r u le Consumer contracts S tatutory in terv en tio n N egating the statutory im plied te r m s Consumer contracts Strict interpretation o f exclusion c la u ses F urther illu stratio n s N egligence lia b ility B reach o f an a b s o l u t e d u t y J u d ic ia l h o st il it y fu rth er il l u s t r a t e d S o m e spe c ia l e x c l u sio n c l a u s e s W ith all faults E xcluding o r lim iting th e dam ages re co v erab le C onsequential l o s s Im posing tim e lim its E xcluding th e right to re je c t R elevance o f contract descrip tio n A rb itra tio n A cknow ledgm ent and declarations o f n o n -re lia n c e W h e t h e r e x c l u sio n c l a u s e s a r e av aila ble to t h ir d PARTIES T he com m on la w Statute la w A p p licatio n

4 CONTENTS xi 3. AVOIDANCE AND QUALIFICATION OF EXCLUSION CLAUSES O n u s o f p r o o f L ia b il it y fo r f r a u d L ia b il it y for b r e a c h o f fid u c ia r y d u t y L ia b il it y fo r b r ea c h o f r u l e s o f n a tu ral ju s t ic e O r a l u n d e r t a k in g s M is r e p r e s e n t in g t h e e ffects o f a t e r m Illegal m isleading p ra c tic e s F u n d a m e n t a l t e r m s a n d fu n d a m e n t a l b r e a c h E x c l u d in g t h e o b lig a tio n to p e r f o r m HARSH AND UNCONSCIONABLE BARGAINS U n c o n s c io n a b l e b a r g a in s R e a s o n a b l e n e s s PART 2 Legislative Control 5. UNLAWFUL EXCLUSION CLAUSES P r e l im in a r y U nfair c o m m e r c ia l p r a c t ic e s R elevant d e f in it io n s P o s s ib l e a pplic a t io n to e x c l u sio n c l a u s e s M is l e a d in g a c t io n s M islea d in g o m is s io n s O m it t in g m a teria l in f o r m a t io n H id in g m a te r ia l in f o r m a t io n U n c l e a r, e t c T h e c o n t e x t o f t h e o m is s io n A g g r e s s iv e c o m m e r c ia l p r a c t ic e s O f f e n c e s

5 xii CONTENTS E n f o r c e m e n t D e f e n c e s T h e by- pass p r o v is io n T im e l im it R ig h t o f R e d r e s s A B u s in e ss p r o t e c t io n O f f e n c e s, e t c C o m m e r c ia l p r a c t i c e s w h ic h a r e in a l l c ir c u m s t a n c e s CONSIDERED UNFAIR VOID AND INEFFECTIVE EXCLUSION CLAUSES C o n s u m e r c r e d it T r a n s p o r t H o u s in g S e e d s F e e d in g s t u f f s C o n su m e r s a f e t y D isa b ility d is c r im in a t io n So c ia l s e c u r it y S o l ic it o r a n d c l ie n t E m p l o y m e n t L ate paym e n t C a n c ella tio n a n d in fo r m a t io n r i g h t s E l e c t r o n ic c o m m u n ic a t io n s H o lid a y a c c o m m o d a t io n c o n t r a c t s In s u ra n c e THE UNFAIR CONTRACT TERMS ACT 1977: SOME PRELIMINARY POINTS T h e a n t i-a v o id a n c e p r o v is io n s Va r ie t ie s o f e x e m pt io n c l a u s e D efining the liability accepted

6 CONTENTS xiii Set-off Im p o s in g t im e l i m it s A r b it r a t io n a g r e e m e n t s In t e r n a t io n a l su pply c o n t r a c t s C h o ic e o f law c l a u s e s C a r r ia g e c o n t r a c t s E xclusion o f liab ility T er m s a u t h o r is e d o r r e q u ir e d S pe c if ie d e x c l u s io n s S e c u r it ie s In t e r e s t s in l a n d In t e l l e c t u a l p r o p e r t y M a r in e c o n t r a c t s E m p l o y m e n t THE UNFAIR CONTRACT TERMS ACT: AREAS OF APPLICATION C o n t r a c t s w it h c o n s u m e r s B u s in e ss l ia b il it y T he suprem acy o f statutory p ro v is io n s N e g l ig e n c e l ia b il it y D eath o r pe r s o n a l i n j u r y N e g l ig e n c e ha ving o t h e r c o n s e q u e n c e s A s s u m pt io n o f r i s k T h e a pplic a t io n o f sec tio n 3: w r itten sta n d a r d ter m c o n t r a c t s N eg o tia t in g t h e ex c l u sio n c l a u s e U sin g o u t-o f- date t e r m s C o n t r a c t s o n t r a d e asso c ia tio n t e r m s T he o t h e r pa r ty s b u s in e s s T h e a p p l ic a b il it y o f se c t io n 3: in t h e ev e n t o f b r e a c h

7 xiv CONTENTS T h e a p p l ic a b il it y o f se c t io n 3: n o n -b r e a c h CASES VARIATIONS IN PERFORMANCE T he a p p l ic a b il it y o f sec t io n 3: n o n -b r e a c h c a s e s to ta l NON-PERFORMANCE T h e relev a n t p e r f o r m a n c e E x c l u d in g t e r m s as to t it l e E x c l u d in g t e r m s as to d e s c r ip t io n, q u a l it y, e t c M is r e p r e s e n t a t io n E ntire agreem ent c la u s e s Indem nities and g u aran tees THE REASONABLENESS TEST T h e statutory g u id e l in e s P l e a d in g t h e A c t L ia b il it y lim it e d to a s p e c if ie d s u m T he availability o f in s u ra n c e R e a s o n a b l e n e s s: t h e appr o a c h o f t h e c o u r t s Sum m ary ru lin g s U nreasonable term s in business c o n tra c ts S u p p l ie r s lia b il it y fo r m a n u f a c t u r e r s d e fa u l t Britvic Soft Drinks Ltd v Messer UK L td Bacardi-Martini Beverages Ltd v Thomas Hardy Packaging L td C o n sid e r a t io n o f u n lik ely c ir c u m s t a n c e s S p e c ia l b u sin e ss a r e a s S urv ey o rs L ocal au th o rities T h e s o l e t r a d e r F in a n c e c o m p a n ie s W h e r e t h e c l a u s e h a s pr e v io u sl y been r e l ie d o n N o t ic e s n o t havin g c o n t r a c t u a l e f f e c t P r e-1978 a u t h o r it ie s A c k n o w l e d g m e n t o f e x a m in a t io n c l a u s e s M isrep resen tatio n

8 CONTENTS xv T h e v a lu e o f p r e c e d e n t U ph o l d in g l o w e r c o u r t r u l in g s F air and re a so n a b le C onsequences o f unreasonableness for the contract-severing the unfair te rm A ction against unreasonable term s u nder other en actm en ts UNFAIR TERMS IN CONSUMER CONTRACTS In t r o d u c t io n S c o p e o f t h e 2014 A c t A c o n s u m e r T he consum er as a legal p e rs o n M andatory provisions, etc Auction sales Excluded contracts Choice o f law T erm s autom atically void Negligence liability The implied terms Other non-excludable terms C ontracts relating to la n d Im plied te r m s O ral a g re e m e n ts T r a n sa c t io n s o u t sid e th e A c t G u aran tees In d iv id u a l n e g o t ia t io n R u l es fo r a s se ssin g f a ir n e s s S econdary c o n tra c ts G o o d f a it h S ubstantial or procedural u n fairn ess A significant im balance U n fair te r m s Additions to the lis t E x c l u s io n o f c o r e p r o v is io n s T he separateness o f the e x e m p tio n s R elevant case law T he nature o f the assessm ent ex clu d ed U sin g c o r e pr o v is io n s t o ju d g e o t h e r t e r m s T ransparency and p ro m in e n c e

9 xvi CONTENTS In t e l l ig ib il it y c o n s id e r e d R egulatory action The Office o f Fair Trading/Competition and Markets Authority The Financial Conduct A uthority Ofcom W ords and p ictu res T he relevant lan g u ag e C onform ity w ith d escrip tio n P r e c e d e n t o n u n f a ir n e s s O w n in itiativ e C lauses held fa ir C lauses held u n fa ir C ontracts w ith building co n tracto rs The adjudication clause The withholding notice clause W ritten c o n t r a c t s an d t r a n s pa r e n t l a n g u a g e D isapplication o f s C onsequence o f u n fa irn e ss P r e v e n t io n o f c o n t in u e d u se o f u n fa ir t e r m s D ea lin g w it h c o m p l a in t s A pplic a tio n fo r a n in ju n c t io n U n d e rta k in g s In v estig a to r y p o w e r s P u b l ic a t io n, in fo r m a t io n a n d a d v ic e A p pl ic a b l e l a w C rim inal o ffe n c e s A c t io n u n d e r o t h e r e n a c t m e n t s D om estic in frin g em en ts C om m unity in frin g em en t E nforcers General enforcers Designated enforcers Community enforcers CPC enforcers E nhanced consum er m e a s u re s T he enhanced m easures in d e ta il Redress measures Compliance and choice measures Matters related to the enhanced measures

10 CONTENTS xvii In d e x