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New law to protect small businesses from unfair contracts

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Business.gov.au have provided information on a new law coming into effect next year protecting small businesses from unfair contracts.

According to Business.gov.au’s report, the new law, which will come into effect on 12 November 2016, will protect small businesses with less than 20 employees if they enter into or renew a standard form contract on or after 12 November 2016 that are valued up to $300,000 (or $1 million if the contract is longer than 12 months).

Under the new law, a court or tribunal will be able to cancel a standard form contract if they find it unfair. Unfair terms can include terms which allows one business but not the other to change the contract, avoid obligations or breach the terms without consequences.

More information on standard form contracts and unfair contract terms can be found here.

 

Image via Pixabay.

 
 

 

 

 

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