1. Opting out of the earnings related part (S2P) of the state pension arrangements. Occupational pension schemes or appropriate personal pension plans must first satisfy contracting out conditions to ensure that they secure benefits that replace or improve upon those otherwise receivable under S2P. 2. Using exemption clauses in commercial contracts to ‘contract out’ of liabilities that would otherwise attach. See UNFAIR CONTRACT TERMS ACT 1977.
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Persons may relieve themselves or restrict their liability by incorporating conditions in the agreements entered into with other parties. So long as these conditions are not contrary to common law, that can be raised as a defense.