UCTA reasonableness test under scrutiny

Author: | Published: 5 Mar 2018

Under the English Unfair Contract Terms Act 1977, where a party deals on its written standard terms of business exclusions or limitations of that party’s liability must pass the Act’s reasonableness test

Parties engaged in complex financing transactions may well presume that the Unfair Contract Terms Act (UCTA) of 1977 is of little concern for them, even when using English law governed documents. However, the Court of Appeal's decision in African Export-Import Bank v Shebah Exploration & Production Company suggests that where lenders routinely use industry standard forms, such as the Loan Market Association's (LMA) recommended documents, with little or no amendment, they should perhaps think twice....