Contract and Commercial Law Act 2017- implications for insurers
The Contract and Commercial Law Act 2017 (CCLA) comes into force on 1 September 2017, and brings with it an increasing shift towards user-friendly and modernised legislation.
What is the CCLA?
The CCLA repeals and combines the following commercial statutes into one Act:
- Carriage of Goods Act 1979;
- Contracts (Privity) Act 1982;
- Contractual Mistakes Act 1977;
- Contractual Remedies Act 1979;
- Electronic Transactions Act 2002;
- Frustrated Contracts Act 1944;
- Illegal Contracts Act 1970;
- Mercantile Law Act 1908 (other than Part 5);
- Minors' Contracts Act 1969;
- Sale of Goods Act 1908; and
- Sale of Goods (United Nations Convention) Act 1994.
The CCLA will not substantially amend current law. Rather, it will clarify and modernise the language of the repealed statutes, making it easier for businesses and users to understand. It will also make minor changes where provisions of the repealed statutes were inconsistent with the law.
What do I need to do?
Contracts entered into after 1 September 2017 must fully comply with the CCLA. This means that all insurance policy documents should be reviewed and updated by 1 September.
Any settlement agreements or any other bespoke agreements between an insurer and an insured or a third party, and intended to be signed after 1 September, should also be reviewed. In particular, many settlement agreements will refer to the Contractual Mistakes Act 1977 and possibly the Contractual Remedies Act 1979. While the substance of this legislation hasn't changed, references to specific sections of the Acts will need to be updated.
If you have any questions about how these changes may affect you, please contact a member of our litigation and dispute resolution team.
Disclaimer: the content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.