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ARTICLE · 06 NOVEMBER 2013

Dispute resolution clauses in some standard form contracts may be unenforceable

Following a recent case, Standards Australia advises that dispute resolution clauses should be reviewed.

AustraliaCorporate/Commercial Law
But the worm shall revive thee with kisses;
Thou shalt change and transmute as a god,
As the rod to a serpent that hisses,
As the serpent again to a rod.

A. C. Swinburne, Dolores 1866

In brief - Standards Australia advises that dispute resolution clauses should be reviewed

A recent decision of the Victorian Supreme Court has found that a contractual dispute resolution clause is unenforceable at law because it amounted to an "agreement to agree".

Decision has implications for numerous standard form contracts

On 29 August 2013, Standards Australia published an alert, Australian Standard Conditions of Contract, advising that dispute resolution provisions in a number of its standard form contracts should be reviewed in light of the decision of the Victorian Supreme Court in WTE Co-generation and Visy Energy Pty Limited v RCR Energy Pty Limited & Anor [2013] VSC 314.

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