Call Us Today 07 3087 3493
Home >  Blog >  Unfair Contract Terms What is a Standard Form Contract?

Unfair Contract Terms What is a Standard Form Contract?

Posted by Elizabeth Gore-Jones on 19 September 2016

The new unfair contract terms taking effect from 12 November 2016 will apply to standard form contracts.

A contract will be taken to be a standard form contract unless the other party can establish to the contrary. 

In determining if a contract is a standard form contract, the court must take into account:
1. Whether one (1) party has most of the bargaining power;
2. Was the contract prepared by one (1) party before any discussions were entered into by the parties;
3. Was one (1) party required to either accept or reject the contract in the form in which it was presented;
4. Was the other party given an opportunity to negotiate the terms of the contract; and
5. Did the terms of the contract take into account specific characteristics of another party or the particular transaction.

Generally speaking a franchise agreement would fall within the definition of a standard form contract. 

Franchisors should review their contracts leading up to the introduction of the new laws.

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 News Franchisor

latest news

Franchising Law Forum: Critical Lessons and Key Changes

Feb 18 2020
Elizabeth Gore-Jones will be presenting a paper at the Legalwise seminar to be held on 26 March 2020 in Brisbane Queensland. The presentation will provide a critical franchising update which will include: a step-by-step review of the legi...

Quick Question?

Liability limited by a scheme approved under professional standards legislation

Brisbane Office Address: Clarence Chambers,
Level 10, 239 George St,
Brisbane,
Queensland, Australia, 4000

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