ABSTRACT

This chapter deals with exclusion clauses and unfair terms within a contract. It describes the judicial and statutory approach towards unfair clauses, incorporating the enacted Consumer Rights Act (CRA) 2015. Exclusion clauses are also present in individually negotiated contracts. A party who is seeking to rely on an exclusion clause to exclude or limit liability must prove that the clause has been validly incorporated into the contract. The contra proferentem rule will apply in the interpretation of exclusion clauses and contract clauses. The Unfair Terms in Consumer Contract Regulations 1999 governed terms in consumer contracts, but this instrument has been revoked and replaced by the CRA 2015. In order to fully appreciate the changes made by the CRA 2015, it is important to be aware of legislation on unfair terms in consumer contracts. The CRA regulates 'unfair terms' in consumer contracts or unfair consumer notices.