Smith v Eric Bush [1989]

Surveyor had contract with building society to value
house for mortgage purposes.
Contained disclaimer of liability for negligence.
House of Lords held:
1.  Valuers of
houses for mortgage purposes had duty of care to purchasers.
2.  Disclaimer
subject to requirement of reasonableness imposed by UCTA.
3.  Having
regard to:
(i) parties’ bargaining power
(ii) whether it was practicable to obtain advice from
alternative source
(iii) difficulty of task being undertaken and
(iv) practical consequences of decision on question of
Disclaimers did not satisfy reasonableness requirement
and were therefore ineffective.
Lord Griffiths stated that different considerations
may well apply in relation to valuations of other types of property, such as
industrial property, large blocks of flats or v expensive houses.