Update – B2B unfair contract terms declared void

On 13 October 2017, the Federal Court has declared, by consent, that eight of the contract terms that JJ Richards & Sons Pty Ltd (JJ Richards) used in their standard form contracts are unfair, and therefore, void, pursuant to the Australian Consumer Law (ACL).

These proceedings were initially addressed by us in our articles titled, 'B2B Unfair Contract Terms being tested by the ACCC'. By way of background, the clauses in question related to automatic renewal, price variation, timings, exclusivity, credit terms, indemnity, and termination. They were all found to be void.

The Court held the eight clauses of their standard form contracts were unfair to small businesses because:

• they reduced JJ Richard's liability to an unacceptably low level;