ACCA LW · Chapter 3 · Question 7 of 10
In a business-to-business contract, a supplier includes a clause excluding liability for death or personal injury resulting from its negligence. Under the Unfair Contract Terms Act 1977, what is the effect of this clause?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It is void and of no effect
Explanation
Section 2(1) of UCTA 1977 provides that a person cannot, by any contract term or notice, exclude or restrict liability for death or personal injury resulting from negligence. Exclusion of liability for other loss caused by negligence is subject to the reasonableness test. UCTA continues to govern business-to-business contracts, while consumer contracts are now covered by the Consumer Rights Act 2015.
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