Unfair contract relief for small business extended

From 12 November 2016, a new law will protect small businesses from unfair terms in standard form of contracts.

The law will apply to a standard form contract entered into or renewed on or after 12 November 2016, where:

1. It is the supply of goods or services or the grant of an interest in land.
2. At least one of the parties is a small business (employs less than 20 people including casual employees employed on a regular and systemic basis).
3. The upfront price payable under the contract is no more than $300,000, or $1m if the contract is for more than 12 months.

The new law will also apply to contracts varied on or after 12 November 2016.

A standard form contract is one that has been prepared by one party to the contract, where the other party has no opportunity, or little opportunity to negotiate the terms.