Condition 8 of their contract stated the driver would be deemed to be the employee of Phillips Products.

Phillips argued that Hamstead Plant Hire should pay for the damage caused by Mr Hyland, because condition 8 was caught by UCTA 1977 section 2(2) and was unreasonable.

Hamstead Plant Hire argued it was not, asserting there had been no negligence on its part that was even being excluded, because there was no ‘breach’ of obligation in section 1(1)(b).

Condition 8 was caught by UCTA 1977, and was unreasonable in excluding its liability for Mr Hyland's damage.

Condition 8 failed the reasonableness test under section 11 and Schedule 2, because the claimants’ hire was for a short period, there was little opportunity for arranging insurance and no choice over the driver.