Standard form contracts with small businesses are now subject to
Australian Consumer Law provisions on unfair contract terms. The
provisions apply to any new or renewed standard form contract
entered into on or after 12 November 2016.
The definition of a small business and the standard form
contract to which the laws apply are found in a recent Surry
Partners publication
available here.
Under the new provision, a term in a standard form contract
deemed unfair by a court or tribunal will be void. However, the
rest of the contract will continue to be binding to the extent it
is capable of operating without the unfair term.
The Australian Competition & Consumer Commission
(ACCC) recently released a report to coincide with
the introduction of the new provisions. It examined standard form
contracts in the retail leasing, independent contracting,
advertising, telecommunications, waste management, franchising and
agriculture industries.
