Video series: Limiting liability in B2B contracts – Episode 3

The impact of The Unfair Contract Terms Act 1977 (UCTA)


Welcome to the third in our series of short videos looking at commonly encountered liability issues in commercial contracts. The topics covered in this series include liability caps, excluding liability for negligence and the distinction between direct and indirect loss.

In this episode, Ben Chivers, Commercial, IP & Technology Partner discusses the impact of the Unfair Contract Terms Act 1977, considering:

  • The two key clauses of UCTA: Sections 2 and 3 and the impact of contractual chains.
  • The UCTA reasonableness test in enforcing a liability exclusion or limitation clause that falls within the Act.
  • Whether "unreasonable" is predictable under UCTA and how the balance of bargaining power can determine this.

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