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party's standard terms of business and to any term which has not been negotiated.

Under section 3 of the Misrepresentation Act 1967, an exclusion of liability for misrepresentation must satisfy the requirement of reasonableness. Section 8 of the UCTA 1977 substitutes the Misrepresentation Act 1967, section 3. In Thos Witter v TBP Industries, it was held that a clause excluding liability for misrepresentation was unreasonable as it purported to exclude liability for fraudulent misrepresentation

Contracts in relation to goods

Sections 6 and 7 of the UCTA, deal with exclusion or limitations on implied terms, contained in the Sale of Goods Act 1979, relating to exclusions in contracts for the sale or supply of goods. They provide, that other than where a party is dealing as consumer, the implied terms relating to correspondence with description (section 13), satisfactory quality, fitness for a particular purpose (section 14 (2) and (3)) and correspondence with sample (section 15) can be excluded if the exclusion clause satisfies the requirement of reasonableness.

The Court in R & B Customs Brokers Co v United Dominions Trust held that the contract it would not be made 'in the course of a business', if it was incidental to the company's main purpose and that the sale of a car was a consumer sale and so the requirement of reasonableness did not arise.

In determining, for the purposes of the provisions relating to sale, hire-purchase and miscellaneous contracts under which goods pass, whether a contract term satisfies the requirement of reasonableness, regard shall be had to the Guidelines in Schedule 2 of the UCTA which are relevant to terms, which seek to exclude, or limit liability for a breach of the terms implied into contracts. Treitel commented: 'Guidelines help to reduce the uncertainty to which the requirement of reasonableness gives rise; but the restrictions on their scope are hard to understand'. In Zockoll Group v Mercury Communications the Guidelines were used in considering reasonableness of a term caught by section 3(2) of the UCTA.

One case on the issue of reasonableness is George Mitchell v Finney Lock Seeds. The plaintiff bought seeds from the defendant and he planted it, but it was defective. He claimed damages for breach of contract, based on the loss of the crop. The defendants were relying on a clause in the contract which limited their liability to the cost of the seeds. It was held that although the clause was part of the agreement, it was unreasonable because the practice of the seller was to negotiate settlements of reasonable claims; the breach was a result of seller's negligence.

In R W Green v Cade Bros Farm there was a contract for the sale of seed potatoes which excluded liability for consequential damage and limited the responsibility of the sellers to returning the price. The buyers suffered loss because the potatoes were infected with a virus. Griffiths J upheld the limitation clause as reasonable though he struck down as unreasonable a clause requiring the buyers to give notice of a claim within three days of delivery.

Judicial approaches to the requirement of reasonableness

Many decisions of the courts have given sign of the factors that might be related in determining whether a clause satisfies the requirement of reasonableness.

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