The Government is continuing its drive to extend the consumer unfair contract terms protections applying to standard form consumer contracts to small business by releasing an Exposure Draft of the proposed amending legislation Treasury Legislation Amendment (Small Business and Unfair Contract Terms) Bill 2015.
The Exposure Draft provides that the unfair contract terms protections will also apply when:
If a contract term is found to be unfair, then it is deemed void and is treated as though the term never existed – this means you would not be able to rely on it in Court.
So what does it mean for a term to be unfair? A term is unfair if:
Two examples of terms that would be unfair are:
If you would like advice on your standard form contracts and whether any of your terms would be deemed unfair, please contact Peter North, Senior Associate, at Lewis Holdway Lawyers on 03 9629 9629.