Section 3(2)(b) of the Unfair Contract Terms Act 1977: An Overview

The Unfair Contract Terms Act 1977 (UCTA) was introduced to provide protection to consumers against unfair contract terms used by traders in their dealings. One of the most significant sections of the Act is section 3(2)(b), which applies to contracts that seek to limit or exclude a party`s liability in the event of death or personal injury caused by negligence.

Section 3(2)(b) states that a contractual term that seeks to limit or exclude liability for death or personal injury resulting from negligence will be considered unfair and therefore unenforceable. This means that a consumer cannot be bound by such a term, even if they have signed a contract that contains it.

The purpose of section 3(2)(b) is to provide a level of protection to consumers against businesses that seek to limit their liability in the event of serious harm caused by their negligence. This is particularly important in industries where safety is paramount, such as transportation, healthcare, and construction.

It is worth noting that section 3(2)(b) only applies to contracts between consumers and traders. It does not apply to business-to-business contracts where both parties are considered to be on equal footing.

In addition, section 3(2)(b) does not completely prohibit the use of exclusion clauses in contracts. Instead, it only applies to clauses that seek to limit or exclude liability for death or personal injury caused by negligence. Other types of exclusion clauses may still be considered valid, provided that they meet certain requirements, such as being reasonable and clear.

To summarize, section 3(2)(b) of the Unfair Contract Terms Act 1977 provides important protection to consumers against unfair contractual terms that seek to limit or exclude liability for death or personal injury resulting from negligence. This section is a vital tool in ensuring that businesses take responsibility for their actions and provide appropriate compensation in the event of harm caused by their negligence.