Unfair Contract Terms Act 1977

16 Liability for breach of duty. S

(1) [F1 Subject to subsection (1A) below,] Where a term of a contract [F1 , or a provision of a notice given to persons generally or to particular persons,] purports to exclude or restrict liability for breach of duty arising in the course of any business or from the occupation of any premises used for business purposes of the occupier, that term [F1 or provision]—

(a) shall be void in any case where such exclusion or restriction is in respect of death or personal injury;

(b) shall, in any other case, have no effect if it was not fair and reasonable to incorporate the term in the contract [F1 or, as the case may be, if it is not fair and reasonable to allow reliance on the provision].

[F2 (1A) Nothing in paragraph (b) of subsection (1) above shall be taken as implying that a provision of a notice has effect in circumstances where, apart from that paragraph, it would not have effect.]

(2) Subsection (1)(a) above does not affect the validity of any discharge and indemnity given by a person, on or in connection with an award to him of compensation for pneumoconiosis attributable to employment in the coal industry, in respect of any further claim arising from his contracting that disease.

(3) Where under subsection (1) above a term of a contract [F3 or a provision of a notice] is void or has no effect, the fact that a person agreed to, or was aware of, the term [F3 or provision] shall not of itself be sufficient evidence that he knowingly and voluntarily assumed any risk.

[F4 (4) This section does not apply to—

(a) a term in a consumer contract, or

(b) a notice to the extent that it is a consumer notice,

(but see the provision made about such contracts and notices in sections 62 and 65 of the Consumer Rights Act 2015).]

Textual Amendments

F1 Words in s. 16(1) inserted (1.4.1991) by Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (c. 40, SIF 76:2), s. 68(3)(a)(6); S.I. 1991/330, art. 4,Schedule

F2 S. 16(1A) inserted (1.4.1991) by Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (c. 40, SIF 76:2), s. 68(3)(b)(6); S.I. 1991/330, art. 4,Schedule

F3 Words in s. 16(3) inserted (1.4.1991) by Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (c. 40, SIF 76:2), s. 68(3)(c)(6); S.I. 1991/330, art. 4,Schedule

F4 S. 16(4) inserted (1.10.2015 for specified purposes, 1.10.2016 in so far as not already in force) by Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 4 para. 15; S.I. 2015/1630, arts. 3(g), 4(c) (with art. 6(1)(2))