PART 1Consumer contracts for goods, digital content and services

CHAPTER 4Services

Can a trader contract out of statutory rights and remedies under a services contract?

I157Liability that cannot be excluded or restricted

1

A term of a contract to supply services is not binding on the consumer to the extent that it would exclude the trader's liability arising under section 49 (service to be performed with reasonable care and skill).

2

Subject to section 50(2), a term of a contract to supply services is not binding on the consumer to the extent that it would exclude the trader's liability arising under section 50 (information about trader or service to be binding).

3

A term of a contract to supply services is not binding on the consumer to the extent that it would restrict the trader's liability arising under any of sections 49 and 50 and, where they apply, sections 51 and 52 (reasonable price and reasonable time), if it would prevent the consumer in an appropriate case from recovering the price paid or the value of any other consideration. (If it would not prevent the consumer from doing so, Part 2 (unfair terms) may apply.)

4

That also means that a term of a contract to supply services is not binding on the consumer to the extent that it would —

a

exclude or restrict a right or remedy in respect of a liability under any of sections 49 to 52,

b

make such a right or remedy or its enforcement subject to a restrictive or onerous condition,

c

allow a trader to put a person at a disadvantage as a result of pursuing such a right or remedy, or

d

exclude or restrict rules of evidence or procedure.

5

The references in subsections (1) to (3) to excluding or restricting a liability also include preventing an obligation or duty arising or limiting its extent.

6

An agreement in writing to submit present or future differences to arbitration is not to be regarded as excluding or restricting any liability for the purposes of this section.

7

See Schedule 3 for provision about the enforcement of this section.