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Unfair Contract Laws Effective Tomorrow

Posted by Elizabeth Gore-Jones on 11 November 2016

If a contract is entered into with a small business from 12 November, 2016 it will be subject to the new unfair contract terms laws.

If you generated the contract, we recommend you do the following:

1. where possible enter into meaningful negotiations with small business (this may take the contract out of the new regime); and/or

2. change potentially unfair clauses so, if a court rules they are unfair, you have a "second best" fall back position to rely upon within your contract.

If you are a small business entering into the contract, we recommend you seek to negotiate potentially unfair terms to have them removed prior to entering the contract.

Nobody wants to be one of the test court cases.  To help to avoid lengthy and expensive court cases you should do everything you can to make sure the contracts don't contain unfair terms prior to signing.

The Franchise & Business Lawyers can undertake contract reviews to assist in this process.

Disclaimer:  This information is not to be relied upon as legal advice.  You should seek legal advice specific to your circumstances.


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.
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