AXA Sun Life Services plc v Campbell Martin Ltd [2011] EWCA Civ 133

Facts

  • Campbell Martin alleged that AXA Sun Life Services made false statements regarding the returns on financial products.
  • AXA sought to prevent claims for misrepresentation by including contractual terms asserting that no reliance was placed on any pre-contractual statements.
  • The central legal question concerned the classification of these terms: whether they functioned as “non-reliance clauses” (negating reliance) or as terms excluding liability for misrepresentation.
  • The disputed terms were set within financial services contracts and required careful interpretation in light of the contract as a whole and the circumstances of its formation.

Issues

  1. Whether contract terms stating that no reliance was placed on pre-contractual statements constitute non-reliance clauses or liability exclusion clauses for the purposes of section 3 of the Misrepresentation Act 1967.
  2. Whether such terms, if acting as exclusions of liability, must satisfy the reasonableness requirement in section 11(1) of the Unfair Contract Terms Act 1977.
  3. How the objective intent of contract terms should be ascertained for the application of section 3.

Decision

  • The Court of Appeal determined that the disputed clauses were genuinely non-reliance clauses, meaning they established that no representations had been made or trusted.
  • These non-reliance terms precluded a claim for misrepresentation from arising, rather than excluding liability for existing misrepresentations.
  • As a result, section 3 of the Misrepresentation Act 1967, and its associated reasonableness test under section 11(1) of the Unfair Contract Terms Act 1977, did not apply.
  • The Court distinguished between non-reliance clauses and clauses seeking to exclude liability for misrepresentation; only the latter fall within section 3.
  • The objective interpretation of the contract terms and the actual agreement between the parties were critical in categorising the clause.
  • A non-reliance clause, if genuinely reflecting the parties' intentions and agreement that no statements were relied upon, can prevent a misrepresentation claim from arising.
  • Liability exclusion terms admit a misrepresentation could exist but seek to avoid accountability; such terms are subject to section 3 and must meet the statutory test of reasonableness.
  • The distinction between these clauses depends on objective contractual interpretation and the actual substance of the parties’ dealings.
  • Careful drafting and clarity in contractual terms are essential to achieve the intended legal effect.

Conclusion

The Court of Appeal clarified that properly drafted non-reliance clauses, genuinely negating reliance on pre-contractual statements, fall outside section 3 of the Misrepresentation Act 1967 and do not require the statutory reasonableness test, providing valuable guidance for contract drafting and misrepresentation litigation.

The answers, solutions, explanations, and written content provided on this page represent PastPaperHero's interpretation of academic material and potential responses to given questions. These are not guaranteed to be the only correct or definitive answers or explanations. Alternative valid responses, interpretations, or approaches may exist. If you believe any content is incorrect, outdated, or could be improved, please get in touch with us and we will review and make necessary amendments if we deem it appropriate. As per our terms and conditions, PastPaperHero shall not be held liable or responsible for any consequences arising. This includes, but is not limited to, incorrect answers in assignments, exams, or any form of testing administered by educational institutions or examination boards, as well as any misunderstandings or misapplications of concepts explained in our written content. Users are responsible for verifying that the methods, procedures, and explanations presented align with those taught in their respective educational settings and with current academic standards. While we strive to provide high-quality, accurate, and up-to-date content, PastPaperHero does not guarantee the completeness or accuracy of our written explanations, nor any specific outcomes in academic understanding or testing, whether formal or informal.
No resources available.

Job & Test Prep on a Budget

Compare PastPaperHero's subscription offering to the wider market

PastPaperHero
Monthly Plan
$10
Assessment Day
One-time Fee
$20-39
Job Test Prep
One-time Fee
$90-350

Note the above prices are approximate and based on prices listed on the respective websites as of May 2025. Prices may vary based on location, currency exchange rates, and other factors.

Get unlimited access to thousands of practice questions, flashcards, and detailed explanations. Save over 90% compared to one-time courses while maintaining the flexibility to learn at your own pace.

All-in-one Learning Platform

Everything you need to master your assessments and job tests in one place

  • Comprehensive Content

    Access thousands of fully explained questions and cases across multiple subjects

  • Visual Learning

    Understand complex concepts with intuitive diagrams and flowcharts

  • Focused Practice

    Prepare for assessments with targeted practice materials and expert guidance

  • Personalized Learning

    Track your progress and focus on areas where you need improvement

  • Affordable Access

    Get quality educational resources at a fraction of traditional costs

Tell Us What You Think

Help us improve our resources by sharing your experience

Pleased to share that I have successfully passed the SQE1 exam on 1st attempt. With SQE2 exempted, I’m now one step closer to getting enrolled as a Solicitor of England and Wales! Would like to thank my seniors, colleagues, mentors and friends for all the support during this grueling journey. This is one of the most difficult bar exams in the world to undertake, especially alongside a full time job! So happy to help out any aspirant who may be reading this message! I had prepared from the University of Law SQE Manuals and the AI powered MCQ bank from PastPaperHero.

Saptarshi Chatterjee

Saptarshi Chatterjee

Senior Associate at Trilegal