National legislation to regulate unfair contract terms has just been introduced into Parliament.  This will mean that you will need to check whether the standard form contracts that you are currently using will comply with the new legislation.  We have produced a mind map that outlines the major areas of the legislation.   Click here for a PDF which you can download and print - preferably on A3.

 

The legislation, which amends amend the ASIC Act and the Trade Practices Act, will apply to unfair terms of a standard form contract.  This means that it will cover contracts for financial products or a contract for the supply of a financial service and other consumer contracts. 

 

An example of contract terms which may be deemed unfair would be terms that permit, or have the effect of permitting, one party (but not another party), to terminate or vary the terms of the contract.

 

The unfair terms provisions are modelled on s32X of the Victorian Fair Trading Act 1999.

 

The national unfair contract terms provisions are due to come into effect in January 2010. States and Territories are expected enact applicable legislation by the end of 2010. 

 

It would be timely for all businesses to review all their standard form contracts as quickly as possible. 

 

Remember, we can help you prepare check lists, and provide you advice, to help you make sure that your standard form contracts will comply with the legislation. 

Unfair Contracts Legislation - its impact on your business by Holley Nethercote Commercial Lawyers is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 2.5 Australia Licence.

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