Is your Contract unfair?
On 12 November 2016 new legislation came into force that will affect the way we do business.
Starting this week, the Unfair Contracts legislation will potentially affect many of the “Standard Form” contracts we enter into.
To be covered by the legislation, the upfront price in the contract must not exceed $300,000.00 for one year (or $1m for multi year contracts).
“Standard Form” contracts are those where there has been no negotiation of terms and conditions and where one of the parties has fewer than 20 employees.
Examples of unfair terms include where one party:-
- can by itself vary terms of the contract that have a significant effect on the arrangement;
- can rely upon unreasonable powers to protect themselves against loss or damage;
- can unreasonably cancel or end a contract as it suits them.
The Australian Competition and Consumer Commission has announced that it will be concentrating on some of the bigger industries first up but in due course will move to a wide ranging review of many standard form contracts including ones we deal with everyday.
We have already been asked to review contracts in anticipation of this new legislation.
For a consultation, please contact the business law team at South Geldard Lawyers on 4936 9100 – experienced business lawyers delivering outcomes.
It is important to seek specific advice regarding your circumstances as this fact sheet provides general information only and does not constitute legal advice.