Exclusion Clauses and Unfair Contract Terms Eleventh Edition Richard Lawson LLM PhD SWEET & MAXWELL THOMSON REUTERS
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...1-001 C o n t r a c t u a l d o c u m e n t s... 1-002 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...1-004 R e a so n a b l e su f f ic ie n c y o f n o t ic e... 1-007 L o c a tio n o f n o t if ic a t io n... 1-010 P o s s ib l e il l e g a l it y...1-014 D is a b l e d p a r t ie s...1-015 P r o v id in g c o p ie s...1-016 U n a v a ilability o f c o p ie s...1-017 W h e r e th e c l a u s e is u n u s u a l... 1-018 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... 1-024 T h e e f f e c t o f s ig n a t u r e...1-025 INTERFOTO ANALYSED...1-026 INTERFOTO AND ARBITRATION CLAUSES... 1-027
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... 1-028 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...1-029 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... 1-031 T h e c o u r s e o f d e a l in g... 1-034 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... 1-038 In c o r po r a tio n by c o n d u c t... 1-043 S ig n a t u r e...1-044 F r a u d an d m is r e p r e s e n t a t io n... 1-045 N on est factum...1-046 2. 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... 2-0 0 2 C ontractual in te n t...2-0 0 3 T he contra proferentem r u le...2-0 0 4 Consumer contracts... 2-0 0 7 S tatutory in terv en tio n... 2-0 0 8 N egating the statutory im plied te r m s... 2-0 0 9 Consumer contracts... 2-0 1 0 Strict interpretation o f exclusion c la u ses...2-0 1 1 F urther illu stratio n s... 2-0 1 2 N egligence lia b ility... 2-0 2 0 B reach o f an a b s o l u t e d u t y...2-0 2 9 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... 2-0 3 0 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... 2-0 3 9 E xcluding o r lim iting th e dam ages re co v erab le...2-0 4 0 C onsequential l o s s... 2-0 4 2 Im posing tim e lim its...2-0 4 6 E xcluding th e right to re je c t...2-0 4 7 R elevance o f contract descrip tio n...2-0 4 8 A rb itra tio n...2-0 4 9 A cknow ledgm ent and declarations o f n o n -re lia n c e...2-0 5 0 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...2-0 5 3 T he com m on la w...2-0 5 4 Statute la w...2-0 5 8 A p p licatio n... 2-0 6 1
CONTENTS xi 3. AVOIDANCE AND QUALIFICATION OF EXCLUSION CLAUSES O n u s o f p r o o f...3-0 0 2 L ia b il it y fo r f r a u d... 3-0 0 3 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...3-0 0 7 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... 3-0 0 8 O r a l u n d e r t a k in g s... 3-0 0 9 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...3-0 1 3 Illegal m isleading p ra c tic e s... 3-0 1 5 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...3-0 1 6 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... 3-0 1 9 4. HARSH AND UNCONSCIONABLE BARGAINS U n c o n s c io n a b l e b a r g a in s... 4-0 0 2 R e a s o n a b l e n e s s... 4-0 0 8 PART 2 Legislative Control 5. UNLAWFUL EXCLUSION CLAUSES P r e l im in a r y...5-001 U nfair c o m m e r c ia l p r a c t ic e s...5-0 0 2 R elevant d e f in it io n s...5-003 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... 5-0 0 4 M is l e a d in g a c t io n s... 5-0 0 5 M islea d in g o m is s io n s...5-0 0 7 O m it t in g m a teria l in f o r m a t io n... 5-0 0 8 H id in g m a te r ia l in f o r m a t io n... 5-0 0 9 U n c l e a r, e t c...5-0 1 0 T h e c o n t e x t o f t h e o m is s io n... 5-011 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...5-0 1 2 O f f e n c e s... 5-0 1 3
xii CONTENTS E n f o r c e m e n t...5-0 1 4 D e f e n c e s... 5-0 1 5 T h e by- pass p r o v is io n... 5-0 1 6 T im e l im it... 5-0 1 7 R ig h t o f R e d r e s s... 5-0 17A B u s in e ss p r o t e c t io n...5-0 1 8 O f f e n c e s, e t c... 5-0 1 9 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... 5-0 2 0 6. VOID AND INEFFECTIVE EXCLUSION CLAUSES C o n s u m e r c r e d it...6-0 0 2 T r a n s p o r t...6-0 0 4 H o u s in g...6-0 0 5 S e e d s...6-0 0 6 F e e d in g s t u f f s... 6-0 0 7 C o n su m e r s a f e t y... 6-0 0 8 D isa b ility d is c r im in a t io n...6-0 0 9 So c ia l s e c u r it y... 6-0 1 0 S o l ic it o r a n d c l ie n t... 6-011 E m p l o y m e n t...6-0 1 2 L ate paym e n t...6-0 1 3 C a n c ella tio n a n d in fo r m a t io n r i g h t s...6-0 1 4 E l e c t r o n ic c o m m u n ic a t io n s... 6-0 1 5 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... 6-0 1 6 In s u ra n c e... 6-0 1 7 7. 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...7-001 Va r ie t ie s o f e x e m pt io n c l a u s e...7-0 0 2 D efining the liability accepted... 7-0 0 5
CONTENTS xiii Set-off... 7-0 0 7 Im p o s in g t im e l i m it s...7-0 0 8 A r b it r a t io n a g r e e m e n t s... 7-0 0 9 In t e r n a t io n a l su pply c o n t r a c t s...7-0 1 0 C h o ic e o f law c l a u s e s...7-0 1 3 C a r r ia g e c o n t r a c t s...7-0 1 4 E xclusion o f liab ility...7-0 1 5 T er m s a u t h o r is e d o r r e q u ir e d... 7-0 1 6 S pe c if ie d e x c l u s io n s...7-0 1 7 S e c u r it ie s... 7-0 1 8 In t e r e s t s in l a n d...7-0 1 9 In t e l l e c t u a l p r o p e r t y...7-021 M a r in e c o n t r a c t s... 7-0 2 2 E m p l o y m e n t... 7-0 2 3 8. 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...8-001 B u s in e ss l ia b il it y... 8-0 0 2 T he suprem acy o f statutory p ro v is io n s...8-003 N e g l ig e n c e l ia b il it y...8-0 0 4 D eath o r pe r s o n a l i n j u r y... 8-0 0 5 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... 8-0 0 6 A s s u m pt io n o f r i s k... 8-0 0 8 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... 8-0 0 9 N eg o tia t in g t h e ex c l u sio n c l a u s e...8-0 1 3 U sin g o u t-o f- date t e r m s... 8-0 1 4 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...8-0 1 5 T he o t h e r pa r ty s b u s in e s s...8-0 1 7 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 8-0 1 8
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... 8-0 1 9 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...8-0 2 3 T h e relev a n t p e r f o r m a n c e...8-0 2 4 E x c l u d in g t e r m s as to t it l e... 8-0 2 5 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... 8-0 2 6 M is r e p r e s e n t a t io n...8-0 2 7 E ntire agreem ent c la u s e s...8-031 Indem nities and g u aran tees... 8-0 3 3 9. THE REASONABLENESS TEST T h e statutory g u id e l in e s... 9-0 0 2 P l e a d in g t h e A c t...9-0 0 3 L ia b il it y lim it e d to a s p e c if ie d s u m...9-0 0 4 T he availability o f in s u ra n c e... 9-0 0 7 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... 9-0 0 9 Sum m ary ru lin g s... 9-0 1 7 U nreasonable term s in business c o n tra c ts... 9-0 1 8 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...9-021 Britvic Soft Drinks Ltd v Messer UK L td...9-0 2 2 Bacardi-Martini Beverages Ltd v Thomas Hardy Packaging L td...9-0 2 4 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...9-0 2 6 S p e c ia l b u sin e ss a r e a s S urv ey o rs... 9-0 2 7 L ocal au th o rities... 9-0 3 0 T h e s o l e t r a d e r...9-0 3 2 F in a n c e c o m p a n ie s... 9-0 3 3 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...9-0 3 9 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...9-0 4 0 P r e-1978 a u t h o r it ie s...9-041 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...9-0 4 2 M isrep resen tatio n... 9-0 4 4
CONTENTS xv T h e v a lu e o f p r e c e d e n t... 9-0 4 8 U ph o l d in g l o w e r c o u r t r u l in g s... 9-0 4 9 F air and re a so n a b le... 9-0 5 2 C onsequences o f unreasonableness for the contract-severing the unfair te rm... 9-0 5 3 A ction against unreasonable term s u nder other en actm en ts...9-0 5 4 10. UNFAIR TERMS IN CONSUMER CONTRACTS In t r o d u c t io n... 10-001 S c o p e o f t h e 2014 A c t... 10-002 A c o n s u m e r...10-003 T he consum er as a legal p e rs o n...10-006 M andatory provisions, etc...10-007 Auction sales... 10-008 Excluded contracts...10-009 Choice o f law... 10-0 10 T erm s autom atically void Negligence liability...10-011 The implied terms... 10-012 Other non-excludable terms... 10-013 C ontracts relating to la n d... 10-014 Im plied te r m s... 10-015 O ral a g re e m e n ts...10-016 T r a n sa c t io n s o u t sid e th e A c t... 10-017 G u aran tees...10-018 In d iv id u a l n e g o t ia t io n...10-019 R u l es fo r a s se ssin g f a ir n e s s... 10-020 S econdary c o n tra c ts... 10-021 G o o d f a it h... 10 022 S ubstantial or procedural u n fairn ess... 10-024 A significant im balance... 10-025 U n fair te r m s... 10-026 Additions to the lis t...10-027 E x c l u s io n o f c o r e p r o v is io n s... 10-028 T he separateness o f the e x e m p tio n s... 10-030 R elevant case law... 10-031 T he nature o f the assessm ent ex clu d ed...10-036 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...10-038 T ransparency and p ro m in e n c e... 10-039
xvi CONTENTS In t e l l ig ib il it y c o n s id e r e d...10-041 R egulatory action The Office o f Fair Trading/Competition and Markets Authority... 1 0-046 The Financial Conduct A uthority...10-048 Ofcom...10-052 W ords and p ictu res... 1 0-054 T he relevant lan g u ag e... 10-055 C onform ity w ith d escrip tio n...10-056 P r e c e d e n t o n u n f a ir n e s s...10-057 O w n in itiativ e... 10-058 C lauses held fa ir...10-059 C lauses held u n fa ir...10-064 C ontracts w ith building co n tracto rs...10-069 The adjudication clause... 1 0-074 The withholding notice clause... 10-075 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... 10-077 D isapplication o f s.6 9...10-079 C onsequence o f u n fa irn e ss... 1 0-080 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...1 0-082 D ea lin g w it h c o m p l a in t s... 1 0-084 A pplic a tio n fo r a n in ju n c t io n... 10-085 U n d e rta k in g s...10-0 8 6 In v estig a to r y p o w e r s...10-087 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...10-088 A p pl ic a b l e l a w...10-089 C rim inal o ffe n c e s...10-0 9 0 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...10-091 D om estic in frin g em en ts... 10-092 C om m unity in frin g em en t...10-093 E nforcers General enforcers...10-094 Designated enforcers...10-095 Community enforcers...10-096 CPC enforcers... 1 0-097 E nhanced consum er m e a s u re s... 10-098 T he enhanced m easures in d e ta il... 10-0 9 9 Redress measures...10-100 Compliance and choice measures...10-101 Matters related to the enhanced measures...10-102
CONTENTS xvii In d e x... 329