What are the key rules about exclusion clauses from the Unfair Contract Terms Act 1977?

The Act gives the courts considerable power to control exclusion clauses. UCTA deals with business-to-business contracts only; therefore, consumer contracts are excluded from this statute.

Section 2 of UCTA states that clauses which exempt liability for negligence must pass the reasonableness test.

Section 3 states that clauses which exempt liability for breach of contract must be subject to the reasonableness test.

Section 11 of the UCTA is the reasonableness test.

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