Stewart Gill Ltd v Horatio Myer & Co Ltd [1992] EWCA Civ 6 (12 February 1992)

Stewart Gill Ltd v Horatio Myer & Co Ltd [1992] EWCA Civ 6 (12 February 1992)

Clause 12.4 of the plaintiffs' standard terms excludes or restricts the defendants' right of set-off and fails the statutory test of reasonableness under the Unfair Contract Terms Act 1977; the clause is therefore unenforceable.

Citation
[1992] EWCA Civ 6
Parties
Claimant: Plaintiffs; Defendant: Defendants
Jurisdiction
England and Wales
Judgment Date
12 February 1992
Procedural Posture
Civil Appeal / Appeal Against Decision Granting Unconditional Leave to Defend
Outcome
appeal dismissed
Legal Topics
Unfair Contract Terms, Set Off, Reasonableness Test, Exemption Clauses
Contract Law Commercial Law Unfair Contract Terms Set Off Reasonableness Test Exemption Clauses

Case Brief

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Parties

Plaintiffs

Claimant

Defendants

Defendant

Procedural Posture

Civil Appeal / Appeal Against Decision Granting Unconditional Leave to Defend

Legal Issues

  1. 1 Whether clause 12.4 of the plaintiffs' standard conditions is caught by section 13(1)(b) of the Unfair Contract Terms Act 1977
  2. 2 Whether the plaintiffs have satisfied the requirement of reasonableness under the Act

Ratio Decidendi

Clause 12.4 of the plaintiffs' standard terms excludes or restricts the defendants' right of set-off and fails the statutory test of reasonableness under the Unfair Contract Terms Act 1977; the clause is therefore unenforceable.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed with costs
  • Leave to appeal to the House of Lords refused