SBDC e-news – September 2016 Unfair contract terms

Unfair contract terms

With a new law commencing on 12 November 2016, the Australian Competition and Consumer Commission (ACCC) reminds all businesses to review their standard form contracts used with small businesses for unfair contract terms.

The new law aims to protect small businesses from unfair terms in business-to-business standard form contracts. Currently, many small businesses entering into contracts with larger businesses have no option but to accept all the terms of the standard form contract they are given. Under this new law, the courts will be able to strike out any terms that are considered unfair.

More information is available from the ACCC detailing which contracts are covered, the types of terms that may be unfair etc. The ACCC also provides information about what to do if you think a term in your contract is unfair.