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Unfair Contract Terms Act 1977

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Enacted
1977
Last amended
1996
Sections
19
Cited in
45 decisions

Unfair Contract Terms Act 1977 is Singapore Act, cited as Act UCTA 1977, currently marked in force and first recorded in 1977.

Cited in court decisions

45

Court decisions that cite this act, detected automatically from judgment text and linked to the judgment we hold.

  • Referred to[2026] SGHC 169Case

    “sentation, they are subject to s 3 of the Misrepresentation Act 1967 (2020 Rev Ed) (“MA”) and would be ineffective except in so far as they satisfy the requirement of reasonableness in s 11(1) of the Unfair Contract Terms Act 1977 (2020 Rev Ed) (“UCTA”) (Asia-Euro Capital SPV I LLP v Regulus Advisors Pte Ltd [2024] SGH”

  • Referred to[2026] SGSCT 15Case

    “(c) Third, and most fundamentally, the Indemnity Promises themselves fail the statutory test of reasonableness under the Unfair Contract Terms Act 1977 (2020 Rev Ed) (the “UCTA”) and could not be enforced against the respondent and his wife as consumers.”

  • Referred to[2016] SGHC 248Case

    “(a) the Plaintiff cannot rely on the contractual clauses because (i) they were not pleaded, and (ii) they are unreasonable under the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (“UCTA”);”

Show 42 more
  • Referred to[2017] SGHC 36Case

    “d by the Defendant under ss 13 and 14 of the SGA, were excluded by Clause 10(f), which disclaimed all express or implied warranties not contained in the Contract. This exclusion was unaffected by the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) as the Contract was an “international supply contract” within the meani”

  • Referred to[2017] SGHC 76Case

    “(e) Are the conditions of contract or any of them not available to Wartsila by reason of the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed)?”

  • Referred to[2017] SGCA 61Case

    “The Arbitrator was also satisfied that this conclusion was unaffected by the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (“UCTA”) because the Contract came within s 26(3)(b) read with s 26(4)(a) of the Act. Section 26 of the UCTA states that:”

  • Referred to[2017] SGHC(I) 11Case

    “(f) that the aberrant value clause, if incorporated into the Agreement, would be contrary to the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed). However, the Plaintiff’s counsel accepted that he could not rely on this for the purposes of the summary judgment application.”

  • Referred to[2018] SGHC 04Case

    “(b) Clause 10.1 of the Standard Terms and the exclusion clause in the LOI breached the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (“the UCTA”) and were therefore ineffective.”

  • Referred to[2018] SGHC 29Case

    “(e) The CS T&Cs are subject to the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (“UCTA”).”

  • Referred to[2018] SGHC 147Case

    “Contract] — [contractual terms] — [Unfair Contract Terms Act; Civil Procedure] — [defence of set-off; Civil Procedure] — [costs] — [offer to settle”

  • Referred to[2018] SGHC 191Case

    “ceability of the Exclusion Clause. I understood the plaintiff to be alluding to this in its arguments on prematurity above. In this relation, the Court of Appeal in CKR noted the applicability of the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) as well as other common law restrictions on clauses in the same nature”

  • Referred to[2018] SGHC 193Case

    “uses which Arup invokes. Millenia avers that, even if the limitation of liability and time-bar clauses which Arup invokes were incorporated into the 2004 and 2007 Appointment Letters, they breach the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (“UCTA”) and thus Arup cannot rely on them.”

  • Referred to[2018] SGHC 264Case

    “As an aside, I note that the plaintiffs plead in their reply that cl 6(b) contravenes s 2(2) of the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed). The plaintiffs have not pursued this point further in their closing submissions. I take it that the plaintiffs have abandoned this point.”

  • Referred to[2019] SGHC(I) 03Case

    “(c) that clause (h) was contrary to section 3(2)(b)(i) of the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (“UCTA”); and”

  • Referred to[2019] SGHC 82Case

    “Applicability of the Unfair Contract Terms Act”

  • Referred to[2019] SGCA 39Case

    “if the burden fell on the First Respondent instead (GD at [29]). The Judge also found that the circumstances surrounding Clause 14A(5) were not so unreasonable as to render it unenforceable under the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (“the UCTA”) (GD at [35]–[36]).”

  • Referred to[2019] SGHC 165Case

    “In so far as DB relied on contract terms in its defence, the Plaintiffs relied on ss 2 and 3 of the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (“UCTA”) and pleaded that any contract term that sought to, amongst other things, exclude or restrict DB’s liability for breach of contract or for negligence was unenforce”

  • Referred to[2019] SGHC(I) 12Case

    “or its own wrongdoing such as to absolve the Defendant from all duties and liabilities under the Agreement, which would defeat its main purpose and would be unenforceable pursuant to the terms of the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (“UCTA”). Finally, it submits that if the clause was effective to limit”

  • Referred to[2020] SGHC 85Case

    “m did not raise any objection on this point. She merely submitted that first, the plaintiff’s reliance on Note (a) had not been properly pleaded; second, the provision should be struck down under the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed); and third, that in any event, the defendant’s notices were in complian”

  • Referred to[2020] SGHCR 9Case

    “The defendant then applied for leave to serve a rejoinder, principally to advance two allegations: first, the clauses the plaintiff relied on were unenforceable under the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (“the UCTA”); and second, the plaintiff’s reliance on these clauses constituted unfair practice unde”

  • Referred to[2021] SGHC 37Case

    “ws as a logical conclusion from the mere fact of equality of treatment of investors under contractual obligations. In some circumstances, a contract may, subject to the restrictions stipulated in the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed), expressly exclude liability for negligence (see also Ng Giap Hon at [3”

  • Referred to[2021] SGHC 219Case

    “Contract] — [Discharge] — [Frustration; Contract] — [Contractual terms] — [Unfair Contract Terms Act”

  • Referred to[2022] SGHC 10Case

    “f care; Tort] — [Negligence] — [Breach of duty; Tort] — [Negligence] — [Causation; Tort] — [Negligence] — [Contributory negligence; Tort] — [Negligence] — [Damages; Contract] — [Contractual terms] — [Unfair Contract Terms Act] — [Sections 2(2) and 11(3)”

  • Referred to[2022] SGHC(A) 2Case

    “form which investors would make use of in order to place crude oil orders with POA (through CAG). The exclusion clause in the reservation form, the respondents contend, meets the requirements of the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed). This contention is a non-starter. First, the respondents have not expla”

  • Referred to[2022] SGHC 39Case

    “Tort — Negligence — Defences — Contributory Negligence; Tort — Vicarious liability; Contract — Contractual terms — Rules of construction][Contract — Contractual terms — Unfair Contract Terms Act][Contract — Contractual terms — Implied terms”

  • Referred to[2022] SGCA 41Case

    “ed but not executed”. Further, it was always the appellant’s case that it could bypass Article 12 because there was a continuing agreement and/or Article 12 was rendered unenforceable pursuant to the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (“UCTA”). The respondent had also objected to the belated inclusion by”

  • Referred to[2022] SGHC 179Case

    “Civil Procedure — Costs — Indemnity costs; Contract — Breach; Contract — Contractual terms — Implied terms; Contract — Contractual terms — Unfair Contract Terms Act; Damages — Measure of damages — Contract; Tort — Negligence — Duty of care”

  • Referred to[2022] SGHC 314Case

    “addition, despite certain terms in the General T&Cs purportedly excluding the imposition of a duty of care, the defendant had yet to demonstrate that the plaintiff’s reliance on the provisions in the Unfair Contract Terms Act 1977 (2020 Rev Ed) (“UCTA”) to dispute these terms would be bound to fail.”

  • Referred to[2023] SGHC 141Case

    “age used rendered an entire agreement clause, in substance, an exception clause, the clause “would be subject to both the relevant common law constraints on exclusion clauses as well as the UCTA [the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed)]”.”

  • Referred to[2023] SGHC 144Case

    “In my judgment, Konica cannot rely on this clause because it is unreasonable and therefore ineffective under the Unfair Contract Terms Act 1977 (Cap 396, 1994 Rev Ed) (“UCTA”). As a preliminary matter, it is clear that s 3 read with s 6(b) of the UCTA apply to the present case. First, s 1(3) of the UCTA provides that s”

  • Referred to[2023] SGHC(A) 27Case

    “had raised a valid objection within the stipulated time; (b) the contra proferentum rule should be applied in construing Clause 2C narrowly in its favour; and (c) Clause 2C was unreasonable under the Unfair Contract Terms Act 1977 (2020 Rev Ed) (the “UCTA”).”

  • Referred to[2023] SGHC 258Case

    “Insolvency Law — Winding up — Triable issue; Contract — Contractual discretion; Contract — Contractual terms — Unfair Contract Terms Act”

  • Referred to[2024] SGHC 18Case

    “ts are not reasonable in the context of an individual customer entering into an agreement with a financial institution. He also says that the defendants cannot rely on them as they are subject to the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (the “UCTA”). He provides no explanation for how the UCTA operates to p”

  • Referred to[2024] SGHC 76Case

    “pondent for 19 years before his agency agreement was terminated in March 2022. In this action, he is suing the defendant for wrongful termination, unjust enrichment (“UE claim”) and a claim under the Unfair Contract Terms Act 1977 (2020 Rev Ed) (“UCTA claim”). The defendant applied to strike out the claimant’s claim in”

  • Referred to[2024] SGHC 133Case

    “In any event, I consider that the disclaimer does not satisfy the requirement of reasonableness under the Unfair Contract Terms Act 1977. Phoenix knew that the Buyer and the Seller would be relying on its reports for “benchmarking of key management roles”, and it was not reasonable of Phoenix to seek to exclude liabili”

  • Referred to[2024] SGHC 147Case

    “Contract — Contractual terms — Admissibility of Evidence; Contract — Contractual terms — Interpretation; Contract — Contractual terms — Incorporation by reference; Contract — Contractual terms — Unfair Contract Terms Act; Contract — Contractual terms — Implied term; Damages — Liquidated damages or penalty”

  • Referred to[2024] SGHC(I) 19Case

    “pansive reading of Clause 9.6 is taken, this is at most a potential defence Phoenix could have argued, ie, that the Sale Contracts are subject to a limitation of liability (potentially subject to the Unfair Contract Terms Act 1977 (2020 Rev Ed)). However, these arguments were not run as a defence by Phoenix. Instead, P”

  • Referred to[2024] SGHC 179Case

    “majeure clause; Contract — Contractual terms — Rules of construction — Whether force majeure event rendered compliance “impossible or impracticable”; Contract — Contractual terms — Sections 3 and 11 Unfair Contract Terms Act 1977 (2020 Rev Ed) — Whether test of reasonableness applies to contractual terms; Contract — Re”

  • Referred to[2024] SGHC 279Case

    “vision reproduced in paragraph [165] above, any term seeking to exclude liability for misrepresentation shall only have effect if it satisfies the requirement of “reasonableness” under s 11(1) of the Unfair Contract Terms Act 1977 (2020 Rev Ed) (“UCTA”), which I also reproduce for ease of reference:”

  • Referred to[2024] SGHC 325Case

    “The plaintiffs’ solicitors argued in their closing submissions that cll 9(a) and 17 fall afoul of s 3 read with s 11 of the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) (“UCTA”). Their submissions on this point consisted of nothing more than this bald sentence. The plaintiffs have not shown that they dealt with the”

  • Referred to[2025] SGHC 4Case

    “Agency — Principal — Holding out; Contract — Contractual terms — Construction; Contract — Contractual terms — Unfair Contract Terms Act; Tort — Negligence — Duty of care; Tort — Negligence — Causation; Tort — Negligence — Contributory negligence; Tort — Vicarious liability”

  • Referred to[2025] SGHC 66Case

    “ation of Actions — Particular causes of action — Contract; Limitation of Actions — Particular causes of action — Tort; Contract — Contractual terms — Exclusion clauses; Contract — Contractual terms — Unfair Contract Terms Act; Tort — Negligence — Duty of care; Tort — Negligence — Breach of duty; Tort — Negligence — Cau”

  • Referred to[2025] SGHCR 21Case

    “e validity of the non-representation clause merits fuller consideration given that it is subject to the requirement of reasonableness under s 3 of the Misrepresentation Act 1967 read with s 11 of the Unfair Contract Terms Act 1977. Further, I am not persuaded that the matters raised by the Claimant would render the Def”

  • Referred to[2025] SGHC(A) 13Case

    “Contract — Contractual terms — Construction; Contract — Contractual terms — Unfair Contract Terms Act; Tort — Negligence — Duty of care; Tort — Vicarious liability”

  • Referred to[2025] SGHC 223Case

    “Contract — Contractual terms — Implied term of good faith, mutual trust, confidence and goodwill; Contract — Contractual terms — Unfair Contract Terms Act; Contract — Contractual terms — Interpretation; Restitution — Unjust enrichment”

Scope of this Part

For the purposes of this Part, “negligence” means the breach —

(a)

of any obligation, arising from the express or implied terms of a contract, to take reasonable care or exercise reasonable skill in the performance of the contract; or

(b)

of any common law duty to take reasonable care or exercise reasonable skill (but not any stricter duty).

(2)

This Part is subject to Part 3; and in relation to contracts, the operation of sections 2 to 4 and 7 is subject to the exceptions made by the First Schedule.

(3)

In the case of both contract and tort, sections 2 to 7 apply (except where the contrary is stated in section 6(4)) only to business liability, that is liability for breach of obligations or duties arising from things done or to be done by a person in the course of a business (whether his own business or another’s), and references to liability are to be read accordingly.

(4)

In relation to any breach of duty or obligation, it is immaterial for any purpose of this Part whether the breach was inadvertent or intentional, or whether liability for it arises directly or vicariously.

(1)

For the purposes of this Part, “negligence” means the breach —

(a)

of any obligation, arising from the express or implied terms of a contract, to take reasonable care or exercise reasonable skill in the performance of the contract; or

(b)

of any common law duty to take reasonable care or exercise reasonable skill (but not any stricter duty).

(2)

This Part is subject to Part 3; and in relation to contracts, the operation of sections 2 to 4 and 7 is subject to the exceptions made by the First Schedule.

(3)

In the case of both contract and tort, sections 2 to 7 apply (except where the contrary is stated in section 6(4)) only to business liability, that is liability for breach of obligations or duties arising from things done or to be done by a person in the course of a business (whether his own business or another’s), and references to liability are to be read accordingly.

(4)

In relation to any breach of duty or obligation, it is immaterial for any purpose of this Part whether the breach was inadvertent or intentional, or whether liability for it arises directly or vicariously.

Negligence liability

(1)

A person cannot by reference to any contract term or to a notice given to persons generally or to particular persons exclude or restrict his liability for death or personal injury resulting from negligence.

(2)

In the case of other loss or damage, a person cannot so exclude or restrict his liability for negligence except in so far as the term or notice satisfies the requirement of reasonableness.

(3)

Where a contract term or notice purports to exclude or restrict liability for negligence, a person’s agreement to or awareness of it is not of itself to be taken as indicating his voluntary acceptance of any risk.

Liability arising in contract

(1)

This section applies as between contracting parties where one of them deals as consumer or on the other’s written standard terms of business.

(2)

As against that party, the other cannot by reference to any contract term —

(a)

when himself in breach of contract, exclude or restrict any liability of his in respect of the breach; or

(b)

claim to be entitled —

(i)

to render a contractual performance substantially different from that which was reasonably expected of him; or

(ii)

in respect of the whole or any part of his contractual obligation, to render no performance at all,except in so far as (in any of the cases mentioned in this subsection) the contract term satisfies the requirement of reasonableness.

Unreasonable indemnity clauses

(1)

A person dealing as consumer cannot by reference to any contract term be made to indemnify another person (whether a party to the contract or not) in respect of liability that may be incurred by the other for negligence or breach of contract, except in so far as the contract term satisfies the requirement of reasonableness.

(2)

This section applies whether the liability in question —

(a)

is directly that of the person to be indemnified or is incurred by him vicariously;

(b)

is to the person dealing as consumer or to someone else.

“Guarantee” of consumer goods

(1)

In the case of goods of a type ordinarily supplied for private use or consumption, where loss or damage —

(a)

arises from the goods proving defective while in consumer use; and

(b)

results from the negligence of a person concerned in the manufacture or distribution of the goods,liability for the loss or damage cannot be excluded or restricted by reference to any contract term or notice contained in or operating by reference to a guarantee of the goods.

(2)

For these purposes —

(a)

goods are to be regarded as “in consumer use” when a person is using them, or has them in his possession for use, otherwise than exclusively for the purposes of a business; and

(b)

anything in writing is a guarantee if it contains or purports to contain some promise or assurance (however worded or presented) that defects will be made good by complete or partial replacement, or by repair, monetary compensation or otherwise.

(3)

This section does not apply as between the parties to a contract under or in pursuance of which possession or ownership of the goods passed.

Sale and hire-purchase

(1)

Liability for breach of the obligations arising from —

(a)

section 12 of the Sale of Goods Act 1979 (seller’s implied undertakings as to title, etc.); or

(b)

section 6 of the Hire‑Purchase Act 1969 (the corresponding thing in relation to hire-purchase),cannot be excluded or restricted by reference to any contract term.

(2)

As against a person dealing as consumer, liability for breach of the obligations arising from —

(a)

section 13, 14 or 15 of the Sale of Goods Act 1979 (seller’s implied undertakings as to conformity of goods with description or sample, or as to their quality or fitness for a particular purpose); or

(b)

section 6A, 6B or 6C of the Hire‑Purchase Act 1969 (the corresponding things in relation to hire‑purchase),cannot be excluded or restricted by reference to any contract term.

(3)

As against a person dealing otherwise than as consumer, the liability specified in subsection (2) can be excluded or restricted by reference to a contract term, but only in so far as the term satisfies the requirement of reasonableness.

(4)

The liabilities referred to in this section are not only the business liabilities defined by section 1(3), but include those arising under any contract of sale of goods or hire-purchase agreement.

Miscellaneous contracts under which goods pass

Amended by44/9644/96

(1)

Where the possession or ownership of goods passes under or in pursuance of a contract not governed by the law of sale of goods or hire-purchase, subsections (2) to (4) apply as regards the effect (if any) to be given to contract terms excluding or restricting liability for breach of obligation arising by implication of law from the nature of the contract.

(2)

As against a person dealing as consumer, liability in respect of the goods’ correspondence with description or sample, or their quality or fitness for any particular purpose, cannot be excluded or restricted by reference to any such term.

(3)

As against a person dealing otherwise than as consumer, that liability can be excluded or restricted by reference to such a term, but only in so far as the term satisfies the requirement of reasonableness.

(3A)

Liability for breach of the obligations arising under section 2 of the Supply of Goods Act 1982 (implied terms about title, etc., in certain contracts for the transfer of property in goods) cannot be excluded or restricted by reference to any such term.

Amended by44/96

(4)

Liability in respect of —

(a)

the right to transfer ownership of the goods, or give possession; or

(b)

the assurance of quiet possession to a person taking goods in pursuance of the contract,cannot (in a case to which subsection (3A) does not apply) be excluded or restricted by reference to any such term except in so far as the term satisfies the requirement of reasonableness.

Amended by44/96

Effect of breach

(1)

Where for reliance upon it a contract term has to satisfy the requirement of reasonableness, it may be found to do so and be given effect accordingly notwithstanding that the contract has been terminated either by breach or by a party electing to treat it as repudiated.

(2)

Where on a breach the contract is nevertheless affirmed by a party entitled to treat it as repudiated, this does not of itself exclude the requirement of reasonableness in relation to any contract term.

Evasion by means of secondary contract

A person is not bound by any contract term prejudicing or taking away rights of his which arise under, or in connection with the performance of, another contract, so far as those rights extend to the enforcement of another’s liability which this Part prevents that other from excluding or restricting.

“Reasonableness” test

(1)

In relation to a contract term, the requirement of reasonableness for the purposes of this Part and section 3 of the Misrepresentation Act 1967 is that the term shall have been a fair and reasonable one to be included having regard to the circumstances which were, or ought reasonably to have been, known to or in the contemplation of the parties when the contract was made.

(2)

In determining for the purposes of section 6 or 7 whether a contract term satisfies the requirement of reasonableness, regard shall be had in particular to the matters specified in the Second Schedule; but this subsection does not prevent the court or arbitrator from holding, in accordance with any rule of law, that a term which purports to exclude or restrict any relevant liability is not a term of the contract.

(3)

In relation to a notice (not being a notice having contractual effect), the requirement of reasonableness under this Act is that it should be fair and reasonable to allow reliance on it, having regard to all the circumstances obtaining when the liability arose or (but for the notice) would have arisen.

(4)

Where by reference to a contract term or notice a person seeks to restrict liability to a specified sum of money, and the question arises (under this or any other Act) whether the term or notice satisfies the requirement of reasonableness, regard shall be had in particular (but without prejudice to subsection (2) in the case of contract terms) to —

(a)

the resources which he could expect to be available to him for the purpose of meeting the liability should it arise; and

(b)

how far it was open to him to cover himself by insurance.

(5)

It is for those claiming that a contract term or notice satisfies the requirement of reasonableness to show that it does.

Dealing as consumer

(1)

A party to a contract “deals as consumer” in relation to another party if —

(a)

he neither makes the contract in the course of a business nor holds himself out as doing so;

(b)

the other party does make the contract in the course of a business; and

(c)

in the case of a contract governed by the law of sale of goods or hire-purchase, or by section 7, the goods passing under or in pursuance of the contract are of a type ordinarily supplied for private use or consumption.

(2)

But on a sale by auction or by competitive tender the buyer is not in any circumstances to be regarded as dealing as consumer.

(3)

Subject to this, it is for those claiming that a party does not deal as consumer to show that he does not.

Varieties of exemption clause

(1)

To the extent that this Part prevents the exclusion or restriction of any liability it also prevents —

(a)

making the liability or its enforcement subject to restrictive or onerous conditions;

(b)

excluding or restricting any right or remedy in respect of the liability, or subjecting a person to any prejudice in consequence of his pursuing any such right or remedy;

(c)

excluding or restricting rules of evidence or procedure,and (to that extent) sections 2 and 5 to 7 also prevent excluding or restricting liability by reference to terms and notices which exclude or restrict the relevant obligation or duty.

(2)

But an agreement in writing to submit present or future differences to arbitration is not to be treated under this Part as excluding or restricting any liability.

Interpretation of this Part

In this Part —“business” includes a profession and the activities of any Government department or local or public authority;“goods” has the same meaning as in the Sale of Goods Act 1979;“hire-purchase agreement” has the same meaning as in the Hire‑Purchase Act 1969;“negligence” has the meaning given to it by section 1(1);“notice” includes an announcement, whether or not in writing, and any other communication or pretended communication;“personal injury” includes any disease and any impairment of physical or mental condition.

Definition

“business” includes a profession and the activities of any Government department or local or public authority;

Definition

“goods” has the same meaning as in the Sale of Goods Act 1979;

Definition

“hire-purchase agreement” has the same meaning as in the Hire‑Purchase Act 1969;

Definition

“negligence” has the meaning given to it by section 1(1);

Definition

“notice” includes an announcement, whether or not in writing, and any other communication or pretended communication;

Definition

“personal injury” includes any disease and any impairment of physical or mental condition.

International supply contracts

(1)

The limits imposed by this Act on the extent to which a person may exclude or restrict liability by reference to a contract term do not apply to liability arising under such a contract as is described in subsection (3).

(2)

The terms of such a contract are not subject to any requirement of reasonableness under section 3 or 4.

(3)

Subject to subsection (4), that description of contract is one whose characteristics are the following:

(a)

either it is a contract of sale of goods or it is one under or in pursuance of which the possession or ownership of goods passes; and

(b)

it is made by parties whose places of business (or, if they have none, habitual residences) are in the territories of different States.

(4)

A contract falls within subsection (3) only if either —

(a)

the goods in question are, at the time of the conclusion of the contract, in the course of carriage, or will be carried, from the territory of one State to the territory of another;

(b)

the acts constituting the offer and acceptance have been done in the territories of different States; or

(c)

the contract provides for the goods to be delivered to the territory of a State other than that within whose territory those acts were done.

Choice of law clauses

(1)

Where the proper law of a contract is the law of Singapore only by choice of the parties (and apart from that choice would be the law of some country outside Singapore) sections 2 to 7 do not operate as part of the proper law.

(2)

This Act has effect notwithstanding any contract term which applies or purports to apply the law of some country outside Singapore, where (either or both) —

(a)

the term appears to the court, or arbitrator or arbiter to have been imposed wholly or mainly for the purpose of enabling the party imposing it to evade the operation of this Act; or

(b)

in the making of the contract one of the parties dealt as consumer, and he was then habitually resident in Singapore, and the essential steps necessary for the making of the contract were taken there, whether by him or by others on his behalf.

Provision for sea carriage of passengers

(1)

This section applies to a contract for carriage by sea of a passenger or of a passenger and his luggage.

(2)

A person is not precluded by this Act from excluding or restricting liability for loss or damage in such circumstances and to such extent as may be prescribed by order made by the Minister by reference to a term of the contract so prescribed.

Saving for other relevant legislation

(1)

Nothing in this Act removes or restricts the effect of, or prevents reliance upon, any contractual provision which —

(a)

is authorised or required by the express terms or necessary implication of an enactment; or

(b)

being made with a view to compliance with an international agreement to which Singapore is a party, does not operate more restrictively than is contemplated by the agreement.

(2)

A contract term is to be taken for the purposes of Part 1 as satisfying the requirement of reasonableness if it is incorporated or approved by, or incorporated pursuant to a decision or ruling of, a competent authority acting in the exercise of any statutory jurisdiction or function and is not a term in a contract to which the competent authority is itself a party.

Definition

“competent authority” means any court, arbitrator or arbiter, Government department or public authority;

Definition

“enactment” means any legislation (including subsidiary legislation) of Singapore and any instrument having effect by virtue of such legislation;

Definition

“statutory” means conferred by an enactment.

Short title and transitional

(1)

This Act may be cited as the Unfair Contract Terms Act 1977.

(2)

Nothing in this Act applies in relation to a contract made or liability for loss or damage suffered before 12 November 1993 except in so far as it was applicable by virtue of section 5 of the Civil Law Act 1909 in force before that date.

Scope of sections 2 to 4 and 7

FIRST SCHEDULESection 1(2)Scope of sections 2 to 4 and 71. Sections 2 to 4 do not extend to —

(a)

any contract of insurance (including a contract to pay an annuity on human life);

(b)

any contract so far as it relates to the creation or transfer of an interest in land, or to the termination of such an interest, whether by extinction, merger, surrender, forfeiture or otherwise;

(c)

any contract so far as it relates to the creation or transfer of a right or interest in any patent, trade mark, copyright, registered design, technical or commercial information or other intellectual property, or relates to the termination of any such right or interest;

(d)

any contract so far as it relates —

(i)

to the formation or dissolution of a company (which means any body corporate or unincorporated association and includes a partnership); or

(ii)

to its constitution or the rights or obligations of its corporators or members; and

(e)

any contract so far as it relates to the creation or transfer of securities or of any right or interest in securities.

2. Section 2(1) extends to —

(a)

any contract of marine salvage or towage;

(b)

any charterparty of a ship or hovercraft; and

(c)

any contract for the carriage of goods by ship or hovercraft,but subject to this, sections 2 to 4 and 7 do not extend to any such contract except in favour of a person dealing as consumer.

3. Where goods are carried by ship or hovercraft in pursuance of a contract which either —

(a)

specifies that as the means of carriage over part of the journey to be covered; or

(b)

makes no provision as to the means of carriage and does not exclude that means,then sections 2(2), 3 and 4 do not, except in favour of a person dealing as consumer, extend to the contract as it operates for and in relation to the carriage of the goods by that means.

4. Subsections (1) and (2) of section 2 do not extend to a contract of employment, except in favour of the employee.

Guidelines for Application of Reasonableness Test

SECOND SCHEDULESection 11(2)Guidelines for Application of Reasonableness TestThe matters to which regard is to be had in particular for the purposes of sections 6(3) and 7(3) and (4) are any of the following which appear to be relevant:

(a)

the strength of the bargaining positions of the parties relative to each other, taking into account (among other things) alternative means by which the customer’s requirements could have been met;

(b)

whether the customer received an inducement to agree to the term, or in accepting it had an opportunity of entering into a similar contract with other persons, but without having to accept a similar term;

(c)

whether the customer knew or ought reasonably to have known of the existence and extent of the term (having regard, among other things, to any custom of the trade and any previous course of dealing between the parties);

(d)

where the term excludes or restricts any relevant liability if some condition is not complied with, whether it was reasonable at the time of the contract to expect that compliance with that condition would be practicable;

(e)

whether the goods were manufactured, processed or adapted to the special order of the customer.

Common questions

What is Unfair Contract Terms Act 1977?
Unfair Contract Terms Act 1977 is Singapore Act, cited as Act UCTA 1977, currently marked in force and first recorded in 1977.
Is Unfair Contract Terms Act 1977 still in force?
Yes — Unfair Contract Terms Act 1977 is currently in force.
When did Unfair Contract Terms Act 1977 take effect?
Unfair Contract Terms Act 1977 was first recorded in 1977.
How many sections does Unfair Contract Terms Act 1977 have?
Unfair Contract Terms Act 1977 contains 19 sections.
What amends Unfair Contract Terms Act 1977?
Unfair Contract Terms Act 1977 has been amended by Act 44 of 1996.
Where can I read the official version of Unfair Contract Terms Act 1977?
The official text of Unfair Contract Terms Act 1977 is published at sso.agc.gov.sg.

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