On 12th November a new law comes into effect which will protect small businesses from unfair terms in standard form contracts. Whether your business is large or small, understanding this new law is important if you plan to enter into a contract on or after this date.
The law, which was passed late last year, sets out examples of terms which may be classed as ‘unfair’ - and if a court or tribunal rules as such, the contract will not be binding.
The new law applies to standard form contracts entered into, or renewed, on or after 12th November 2016. Standard form contracts are contracts which are prepared by one party, which give the other party little or no opportunity to negotiate the terms.
The law applies where:
A contract may be considered ‘unfair’ if it:
Some examples of terms which may be considered unfair include terms which allow one party, but not the other, to:
We can help you understand the new law around contracts, and how this change might impact you and your business. Contact Hadyn Oriti on (02) 6583 0449 for further information.