ABSTRACT

In consequence tort-based liability is likely to be an important consideration, in addition to rights and liabilities that arise out of contract. The Unfair Contract Terms Act limits the freedom of parties to include in the contract unfair terms, particularly clauses to restrict liability. The main heads of civil liability under which aggrieved party can bring his action include: negligence; nuisance; strict liability; trespass to land; breach of statutory duty; and contractual liability. The essential elements in establishing liability for negligence are: the existence of a duty to take care; proof of breach of that duty; proof of damage resulting from that breach; and proof that the damage was within the risk against which it was the defendant's duty to protect the claimant, or proof that the damage was reasonably foreseeable, or not too remote. The courts have been cautious in imposing liability for economic loss because of the potential for parties being found liable for large and unpredictable losses.