This chapter discusses the terms of a contract. The terms are the contents of the contract. They also state what the parties’ legal duties and obligations are to each other. Terms may be written, oral, or even implied into a contract. This chapter discusses the difference between a term of a contract and a representation and the difference between express and implied terms. It considers the types of contractual terms, conditions, warranties, and innominate terms, and the distinction between them. The nature of exemption clauses and the methods used by the courts to restrict the use of such clauses and the effects on exemption clauses of the Unfair Contract Terms Act 1977 and Consumer Rights Act 2015 are examined. The chapter concludes with a discussion of restraint of trade clauses commonly found in contracts of employment, contracts for the sale of businesses, and solus agreements
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This chapter examines unfair terms and exclusion clauses in a contract. It explains that exclusion and limitation clauses can be used by the parties to exclude or limit their liability and that they are regulated by statute and common law. It highlights the fact that an exclusion clause can only be effective if it is incorporated into a contract and if it was brought to the other party’s attention prior to the contract being formed. This chapter also discusses the relevant provisions of the Unfair Contract Terms Act 1977 and the Consumer Rights Act 2015, and ongoing efforts to clarify the law in this area.
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This chapter studies the features of legally binding contracts by examining the manner in which the terms of a contract are regulated through statutory intervention. Such legislative measures have come about as a response to the unequal bargaining positions of consumers as contracting parties in business contracts, and the idea that laissez-faire can be contrary to public policy and fairness, for example with certain exclusion clauses. Some examples include statutes such as the Consumer Rights Act 2015 and the Sale of Goods Act 1979 that imply terms into contracts, and the Unfair Contract Terms Act 1977 that regulates the parties’ use of exclusion clauses. This protects the weaker party to a contract from exploitation and provides minimum rights that may not be waived.
