From 12 November 2016, small businesses will benefit from the unfair contract terms protection that has been afforded to consumers since 2010.
In our previous report on this development, we provided detail about the new regime including:
- what constitutes a 'small business'
- what qualifies as a 'standard form contract'
- what the 'upfront price' of a contract means
- what might constitute an 'unfair term' in a contract
- what will happen if a relevant contract contains an unfair term.
Now that the Small Business and Unfair Contract Terms Act 2015 (Cth) is about to come into force, businesses should be well prepared to comply with the new regime. It's important to note that the new provisions will apply to contracts that are entered into on or after 12 November 2016, but also to:
- contracts renewed on or after 12 November 2016
- a term of a contract that is varied on or after 12 November 2016.
This article is intended to provide commentary and general information. It should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this article. Authors listed may not be admitted in all states and territories
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