Excluding liability for negligence in a business contract (Unfair Contract Terms Act 1977 s.2)

Section 2(1) of the Unfair Contract Terms Act 1977 provides that a person cannot by reference to any contract term exclude or restrict liability for death or personal injury resulting from negligence, so clause 9 is ineffective as regards Agnieszka's burnt arm. For other loss or damage, s.2(2) provides that liability for negligence can be excluded or restricted only in so far as the term satisfies the requirement of reasonableness, so the exclusion of liability for the destroyed stock stands or falls on that test. Section 2 applies here because, under s.2(4), it is disapplied only for consumer contracts, and Agnieszka contracted for the purposes of her bakery business, so she is not a consumer (Consumer Rights Act 2015, s.2(3)).

Why A is wrong: Section 2(1) absolutely bars excluding liability for negligently caused personal injury, even in business contracts.

Why B is wrong: She contracted for her business, so she is not a consumer under CRA 2015 s.2(3) and UCTA s.2 applies.

Why D is wrong: Under s.2(2) the exclusion for other loss is effective only if it satisfies the requirement of reasonableness.

Why E is wrong: Section 2(3) says agreement to or awareness of the term is not of itself voluntary acceptance of the risk.