Q&As

Are there any minimum limits for liability caps in business-to-consumer terms and conditions where the service being provided is provided free of charge?

read titleRead full title
Published on LexisPSL on 25/04/2019

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • Are there any minimum limits for liability caps in business-to-consumer terms and conditions where the service being provided is provided free of charge?

In respect of business-to-consumer (B2C) contracts for the supply of services, section 57 of the Consumer Rights Act 2015 (CRA 2015) (contained in CRA 2015, Pt 1) sets out certain rules on liability that cannot be excluded or restricted. In particular, CRA 2015, s 57(3) provides that: ‘[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 [(service to be performed with reasonable care and skill)] and 50 [(information about trader or service to be binding)] 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)’.

A cap on the trader’s liability in a B2C contract for the supply of services in respect of any of the consumer’s statutory rights above can therefore not be lower that the contract price. Such a term would automatically be unenforceable against the consumer. See Practice Note: Consumer Rights Act 2015—unfair terms—Blacklisted terms/notices. Even if the liability provisions (and any cap) comply with the provisions of CRA 2015,

Related documents:

Popular documents