Ucta Sections 1 - 4

Front 1

1. In section 1, what are the three sorts of negligence that the Act deals with?

Back 1

breach of any obligation in a contract
Arising from its express or implied terms
To take reasonable care/exercise reasonable skill

(b) breach of any common law duty
To take reasonable care/exercise reasonable skill
(but not any stricter duty)

(c) breach of any common duty of care under Occupier Liability Act 1957

Front 2

What is business liability defined as by section 1 (3) of the Act?

Back 2

(a) things done by a person in the course of a business, and note, doesn't have to be his own
(b) from occupation of premises used for business premises of the occupier.

Section 1(3)

Front 3

3. A kiddie goes on a school trip to visit an electronics factory. He slips on a staircase which is out of repair. Does the factory owner have a business liability as defined by section 3?

Back 3

No: kiddie obtaining access to the premises for recreational/educational purposes. Factory owner not in the recreational/educational business, so no business liability.

Front 4

4. A kiddie goes to school and hurts himself on a nail sticking out in the changing room. Is the school caught by business negligence as defined by section 1(3)?

Back 4

Yes: it falls within the business purposes of the occupier.
Section 1 (3) (b) In the case of both contract and tort, sections 2 to 7 apply (except where the contrary is stated in section 6(4)) only to business liability, that is liability for breach of obligations or duties arising--
(a) from things done or to be done by a person in the course of a business (whether his own business or another's); or
(b) from the occupation of premises used for business purposes of the occupier;

and references to liability are to be read accordingly but liability of an occupier of premises for breach of an obligation or duty towards a person obtaining access to the premises for recreational or educational purposes, being liability for loss or damage suffered by reason of the dangerous state of the premises, is not a business liability of the occupier unless granting that person such access for the purposes concerned falls within the business purposes of the occupier.

Front 5

5. What about a cinema and an old granny

Back 5

Yes: it falls within the business purposes of the occupier. section 1(3) (b)

Front 6

6. Is vicarious negligence caught under Part 1?

Back 6

Yes: section 4 (2) This section applies whether the liability in question--
(a) is directly that of the person to be indemnified or is incurred by him vicariously;
(b) is to the person dealing as consumer or to someone else.

Front 7

7. What about the defence "oh I didn't mean to"

Back 7

Yes: section 4. We're not looking at intention or lack of it.

Front 8

8. Can you exclude liability for death or personal injury caused by negligence?

Back 8

No: section 2(1)

Front 9

What about in respect of other (ie non PI/death) loss and damage? Can you restrict liability for that?

Back 9

Yes: but only in so far as the term satisfies the requirement of reasonableness.

Section 2(2) Negligence Liability

Note this is only in a business context section 1(3)

Front 10

What about if someone agrees to waive liability for death/personal injury caused by negligence?

Back 10

You may get away with it. "A persons agreement to or awareness of is not of itself to be taken as indicating his voluntary acceptance of the risk". Section 2(3)

Front 11

11. What five situations does section 2 not extend to?

Back 11

(i) insurance
(ii) land, creation, transfer, termination of any interest therein
(iii) intellectual property exception
(iv) formation/dissolution of a company and constitution/rights of members or corporators
(v) securities, creation/transfer, plus any interest therein.

Front 12

Which of the following are caught by section 2 Negligence liability

B1 – B2
B1 – C

Back 12

Both. See section 1(3) business liability only 2 - 7. business defined by section 1(3)(a)

Front 13

13. Does the Schedule 1 exceptions apply to section 3, Liability arising in contract?

Back 13

Yes. Section 1(2) says 2 to 4 and 7

Front 14

14. Can section 3 Liability arising in contract apply in a B1 – B2 situation?

Back 14

Yes, if B2 deals on the other's standard terms of business.

Front 15

15. Does section 3 affect a B1 – C contract?

Back 15

Yes: section 3:1

Front 16

B1 has a clause in a contract with C saying that he can exclude/restrict liability for his own breach. Can he rely on that?

Back 16

Only if it satisfies the requirement of reasonableness. Section 3(2)

Front 17

17. What about if B1 has a clause in a contract with C that says he can only do half the job, if he feels like ("a contractual performance substantially different from that which was reasonably expected of him") even though he himself is the one in breach

Back 17

Only if it satisfies the requirement of reasonableness. Section 3(1) Liability arising in Contract

Front 18

Does Schedule 1 affect section 4 Unreasonable indemnity clauses?

Back 18

Yes

Front 19

C signs a contract with B1 agreeing to indemnify B1 against any liability incurred as a result of B or a third party, A's negligence/breach of contract. Does it fly?

Back 19

No: Only if it satisfies the requirement of reasonableness. Section 4 Unreasonable indemnity clauses

Front 20

What if C1 signs a contract with C2 agreeing to indemnify C2 against any liability incurred as a result of C2 or a third party, D's negligence/breach of contract. Does it fly?

Back 20

Yes. Sections 2 - 7 apply only to actions arising in the course of business

Front 21

What if B2 signs a contract agreeing to indemnify B1 against any liability incurred as a result of B1 or a third party, D's negligence/breach of contract. Does it fly?

Back 21

Yes. section 4 Unreasonable indemnity clauses requires a consumer participant, and the scenario envisages a purely business scenario