A contract is a private agreement. A statute is a rule made by Parliament. When they conflict, the statute wins — always. But understanding why, and what happens to the offending clause, matters in practice.
The hierarchy of rules
UK law places rules in a clear hierarchy: the Human Rights Act and constitutional principles sit at the top; Acts of Parliament come next; then statutory instruments (regulations made under Acts); then court-made precedent; and finally private contracts. A contract cannot override anything above it in that hierarchy.
What happens to an unlawful clause
If a clause in a contract contradicts a statute, the clause is void — it has no legal effect. The rest of the contract usually survives unless the unlawful clause was so fundamental that the whole contract would make no sense without it. Courts apply a test called "severance" to decide whether to remove the offending clause and enforce the rest.
Common examples
A lease clause saying the tenant must pay for all repairs regardless of condition violates the Landlord and Tenant Act 1985 — the clause is void and the statutory obligations apply instead. An employment contract saying the employer can pay below the National Minimum Wage is void — the statutory minimum applies regardless of what was signed.