Introduction
In May 2014, the Commonwealth Treasury, on behalf of Consumer
Affairs Australia and New Zealand (CAANZ),
published a consultation paper seeking the public's views on a
number of proposals designed to protect small businesses from
unfair contract terms (UCTs) in standard form
contracts (Consultation Paper).1
What are unfair contract terms?
Under Part 2-3 of the Australian Consumer Law, a term
in a standard form consumer contract is void if it is unfair. A
contract is a 'consumer contract' if the contract is for
the supply of goods, services or an interest in land to an
individual, where the individual is acquiring the goods, services
or interest in land for predominantly personal, domestic or
household purposes. Whether a contract is a 'standard form
contract' depends on a number of factors, including whether it
was prepared by one party before the parties discussed the
transaction, whether one party was required to either accept or
reject the terms
