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ARTICLE · 16 APRIL 2007

Are Contract Terms Really Binding? Part 2 of 2

Keating Chambers
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This is a construction contract update.

United KingdomReal Estate and Construction
Jonathan Selby, Barrister
Jonathan Selby, Barrister

(5) Section 3 of the Misrepresentation Act 1967

  1. Section 3 of the Misrepresentation Act 1967 ("the MRA 1967"), as substituted by section 8 of UCTA, provides:

    "If a contract contains a term which would exclude or restrict –

    (a) any liability to which a party to a contract may be subject by reason of any misrepresentation made by him before the contract was made; or

    (b) any remedy available to another party to the contract by reason of such a misrepresentation.

    that term shall be of no effect except in so far as it satisfies the requirement of reasonableness as stated in section 11(1) of the Unfair Contract Terms Act 1977; and it is for those claiming that the term satisfies that requirement to show that it does."

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