Contributory negligence (Commercial) meaning

This Practice Note outlines the law on product liability and defective goods under the Consumer Protection Act 1987 (CPA 1987). The Act places liability on producers of defective products. It examines what amounts to a defect for the purposes of the CPA 1987, which parties in the supply chain may face liability, the extent of that liability and any contributory negligence considerations, the categories of damages recoverable, and the defences available to a producer. It also reviews leading case law affecting the meaning of defect and the burden of liability under the CPA 1987, namely Wilkes v DePuy and Gee v DePuy, and notes plans for future reform in this field. Statutory framework CPA 1987 gave effect in UK law to Council Directive 85/374/EEC on liability for defective products (the EU Product Liability Directive or EU PLD). Part I of the CPA 1987 imposes strict liability on producers for damage caused by defects. After the end of the implementation period for the UK’s transition away from the EU,...

This Practice Note This Practice Note outlines the legal framework for defective products under Council Directive 85/374/EEC, known as the EU Product Liability Directive (EU PLD), which fixes liability on producers where products are defective. It explores: the test for when a product is regarded as defective under the EU PLD which actors in the supply chain can be responsible, the extent of their responsibility, and any contributory negligence considerations the categories of recoverable damages and the range of defences open to a producer It reviews Court of Justice jurisprudence and evaluates reports assessing the effectiveness of the EU PLD. Be aware that on 18 November 2024, Directive (EU) 2024/2853 on liability for defective products, repealing Council Directive 85/374/EEC (the Revised EU PLD), was published in the OJEU. The Directive takes effect from 8 December 2024 and will repeal Directive 85/374/EEC, the EU PLD, on 9 December 2026. EU Member States must transpose the Revised EU PLD by 9...

’No greater liability’ provisions frequently appear in collateral warranties (and third party rights memoranda). They are intended to ensure the warrantor’s exposure under the warranty mirrors, and does not exceed, that assumed in the original contract. Yet the wording of such provisions is often contested and, on occasion, gives rise to outcomes the parties did not intend. Poorly balanced formulations may, therefore, distort the allocation of risk that the parties thought they had agreed from the outset or envisaged. Collateral warranties—general principles Commercial practice generally accepts that when a party grants a warranty collateral to an underlying agreement, it should not assume obligations or duties under that warranty that are broader or endure longer than those owed under the original agreement. Indeed, professional indemnity policies commonly withhold cover for collateral warranty claims where the liability stems from obligations more burdensome than those in the original or underlying contract. In British Overseas Bank v Stewart Milne, the court acknowledged that the basic commercial purpose of collateral warranties is central...