Unfair Contract Terms Act 1977

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(1)Nothing in this Act removes or restricts the effect of, or prevents reliance upon, any contractual provision which—

(a)is authorised or required by the express terms or necessary implication of an enactment; or

(b)being made with a view to compliance with an international agreement to which the United Kingdom is a party, does not operate more restrictively than is contemplated by the agreement.

(2)A contract term is to be taken—

(a)for the purposes of Part I of this Act, as satisfying the requirement of reasonableness; and

(b)for those of Part 11, to have been fair and reasonable to incorporate,

if it is incorporated or approved by, or incorporated pursuant to a decision or ruling of, a competent authority acting in the exercise of any statutory jurisdiction or function and is not a term in a contract to which the competent authority is itself a party.

(3)In this section—

  • competent authority” means any court, arbitrator or arbiter, government department or public authority;

  • enactment” means any legislation (including subordinate legislation) of the United Kingdom or Northern Ireland and any instrument having effect by virtue of such legislation; and

  • statutory” means conferred by an enactment.

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