Arcadia's Unfair Contract Terms Act (UCTA)

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The contract law has most common type of unfair terms namely, exclusion clauses, when one party seeks exclude their liability arising under the contract. True exclusion clause recognizes a potential breach of contract and then excuses liability for the breach. Alternatively, the clause is constructed in such a way it only includes reasonable care to perform duties on one of the parties. Arcadia's term mentioned is the type of true exclusion clause indicating the potential breach of contract about defects’ in goods and services to their ccustomers. It further added for customers to consider their property insurance for any damage or loss. The protection against the unfair terms comes from Common Law, the Unfair Contract Terms Act 1977(UCTA) …show more content…

Beth could seek remedy under tort negligence as damage was result of carelessness by installation team. But, its not applicable because of direct contractual relationship exists. In tort,the test for remoteness of damage is whether the kind of damage suffered was reasonably foreseeable by the defendant at the time of the breach of duty (Overseas Tankship (UK) Ltd v Morts Dock and Engineering Co Ltd (The Wagon Mound No 1) [1961] AC 388).The defendant will be liable for any type of damage which is reasonably foreseeable as liable to happen even in the most unusual case unless the risk is so small that a reasonable man would in the whole circumstances feel justified in neglecting it (Heron II [1969] 1 AC 350). In conclusion, when loss occurs, the exclusion clauses become important to rely on for both parties. This could cost supplier if these clauses are challenged. However, the court’s decision could go either way, it is clear that certainly in consumer to business contracts, suppliers can limit their liability through carefully clear written exclusion clauses .However, claimants has potential to seek claim under the two Acts if required tests has been passed making case

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