First Principles of Business Law

The regulation of undesirable business practices

4. Protection against unfair terms in contracts

4.5. Remedies and enforcement

 

 

 

Various remedies are generally available for a contravention of a provision of Chapter 2 of the ACL (injunctions; damages; compensation orders; non-punitive orders; and other orders, such as declaring a transaction void).

Click here for a description of the available remedies.

The inclusion of unfair terms in contracts is not made an offence. Nor are civil pecuniary penalties imposed to punish a contravention.

The prohibition on unfair terms is a powerful tool of consumer protection. The introduction of these provisions have resulted in the revision of many of the standard form contracts previously used by some suppliers of goods and services to consumers.  The extension in 2016 of the same provisions to small businesses contracts will likely be equally significant.

Make sure you know how unfair terms are identified so that you can recognise them when you see them.

Click here to see section 23.

Click here to see section 24.

Click here to see section 25.

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