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What is an Unfair Contract Term?

Posted by Elizabeth Gore-Jones on 9 August 2023
We previously examined the types of contract which are not allowed to contain an unfair contract term. If you enter into those kinds of contracts then you need to remove unfair contract terms to avoid penalties of around $50 million. Some examples of unfair contract terms are as follows: 1.       Allows one party to avoid or limit performance of the contract; 2.       Allows one party, but not the other party to terminate the contract; 3. &nbs...
Posted in:BusinessNewsFranchisor  

Could your contract bring you a $50 million fine?

Posted by Elizabeth Gore-Jones on 2 August 2023
The law around contracts will change on 9 November 2023 introducing large penalties of $50 million or more if you enter into a standard form contract which contains unfair contract terms. Use the following checklist to determine if this could apply to your contracts: 1.  Do you have the bargaining power relating to the transaction? 2.  Have you made another contract in similar terms and if so how many? 3.  Was the contract prepared by you before any discussion occurred betw...
Posted in:NewsFranchisor  

Franchisor liability for Franchisee Employee Underpayments

Posted by Elizabeth Gore-Jones on 18 July 2023
You will recall that the Vulnerable Workers Legislation was introduced in 2017 to pass on the liability for employee underpayments to Franchisors. If a Franchisor was aware, or should have been aware, that a Franchisee had not paid its employees correctly then the Franchisor could be liable. The Fair Work Ombudsman (FWO) is prosecuting Bakers Delight.  This is only the 2nd instance of reliance on this legislation. In this case: the Franchisor audited the Franchisee in February 2019...
Posted in:BusinessNewsFranchisor  

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