Independent Contractors Act - Unfair Contracts Remedy

On 22 August 2008, the Federal Magistrates Court issued judgment in the first case to deal with the "unfair contracts" remedy contained in the Independent Contractors Act 1996 (Cth) (the Act).

Section 12 of the Act, allows the Court to review a "services contract" on the grounds that the contract is unfair or harsh.

A services contract is a contract for services to which an independent contractor is party and which relates to the performance of work by the independent contractor. At least one party to the contract must be a constitutional corporation.

The Act provides that in determining whether the contract is unfair or harsh a Court must have regard to:

1. the terms of the contract when it was made;