Unfair Contract Terms Act

U.K. legislation that prohibits the inclusion of certain types of provisions in contracts. The Act is most explicit in its protection of consumers from warranty and product liability disclaimers. However, it also explicitly prohibits exclusion clauses that would nullify the standard English contract law condition of good-title and right-to-sell, and unless the exclusion is “facially reasonable,” the warranty of quiet enjoyment, (regardless of whether the condition or warranty is implied or explicit). However, the Unfair Contract Terms Act cannot be applied to contracts solely by virtue of a choice of law clause, if by ordinary application of choice of law rules the contract would not apply (i.e., if the contract would normally be under a different country or state’s law, but English law has been imported by a choice of law clause). Similarly, a choice of law clause designed solely to exclude application of the Act is ineffectual, as is a choice of law clause that would limit the rights under the Act of a consumer habitually resident in the United Kingdom.