Unfair Contract Terms to Apply to Small Businesses

Unfair Contract Terms to Apply to Small Businesses

 I recently posted an article about the incoming unfair contract term laws which apply early November 2016.  The new laws will protect small businesses from unfair terms in standard form contracts.

The ACCC now has a page that clarifies the new unfair contract term laws.

Check if these new laws apply to you:

  • Is your contract a “standard form contract”?
    • A contract prepared by one party, where the other party has little or no opportunity to negotiate the terms.
  • Are you entering into, renewing or varying the contract on or after the 12th of November 2016?
  • Is the contract for the supply of goods and services OR the sale or grant of an interest in land?
  • Is at least one of the parties involved a small business?
    • One that employs less than 20 people, including casual employees employed on a regular and systematic basis
  • If the contract is shorter than 12 months, is the upfront price payable under the contract $300,000 or less, or if the contract longer than 12 months, is the upfront price payable under the contract $1 mil?

If you answered yes to all of the above questions, the new unfair contract term laws likely apply to you.  This means that you should have your contracts reviewed to ensure that your contract terms are still enforceable.

However, even if the new laws do not apply to you – if you are a large business, then unfair contract term laws already apply!  It is also a good idea to get any standard form contracts reviewed in the case that you do wish to enter into a contract with a small business in the future.

I have worked with a wide variety of clients to help draft and review contracts, contact me at  or 1300 033 934 for a no-obligation chat.