Call Us Today 07 3087 3493
Home >  Blog >  No Unfairness from November

No Unfairness from November

Posted by Elizabeth Gore-Jones on 13 September 2016

Unfair contract terms may be void if they are found to be unfair from 12 November 2016.

From that date Section 23(1) of the Australian Consumer Law will provide that a term of a consumer contract or small business contract will be void if the term is unfair and the contract is a standard form contract.

This will no doubt apply to many franchise agreements.

The main purpose of the provision appears to be to remedy any perceived imbalance of bargaining power.

Franchisors should review their standard form franchise agreements prior to entering into any new franchise agreements after 12 November 2016. 

If one (1) party alleges that the contract is a standard form contract, then it will be assumed to be a standard form contract unless the other party can establish otherwise.

This article is for information purposes only and should not be relied upon as legal advice.  You must obtain your own legal advice with respect to your specific set of circumstances.  You can contact The Franchise & Business Lawyers directly to obtain advice particular to your needs.

Author: Elizabeth Gore-Jones
About: Elizabeth specialises in franchising law. She lectures at Bond University PLA in franchising, she sits on the Queensland Law Society Franchising Committee, she is a past member of the Women in Franchising committee and a past member of the Franchise Council of Australia.
Connect via: Twitter LinkedIn
Tags: Business Franchisee Franchisor

latest news

Structure Cleaning Contracts

Sep 10 2019
Sham contracting can be a means by which businesses attempt to avoid employment laws and/or payroll tax by engaging services through contractor arrangements rather than employment arrangements. Sham contracting laws were introduced to help prot...

Quick Question?

Liability limited by a scheme approved under professional standards legislation

Brisbane Office Address: Level 36, Riparian Plaza,
71 Eagle Street, Brisbane,
Queensland, Australia, 4001

Gold Coast Office Address: PO Box 428,
Oxenford,
Queensland, Australia, 4210