Australian Consumer Law

 

Chapter 2 - General protections

Part 2-3 - Unfair contract terms  

23  Unfair terms of consumer contracts and small business contracts

(1) A term of a consumer contract or small business contract is void if:

(a) the term is unfair; and

(b) the contract is a standard form contract.

(2) The contract continues to bind the parties if it is capable of operating without the unfair term.

(3) A consumer contract is a contract for:

(a) a supply of goods or services; or

(b) a sale or grant of an interest in land;

to an individual whose acquisition of the goods, services or interest is wholly or predominantly for personal, domestic or household use or consumption.

(4)  A contract is a small business contract if:

(a)  the contract is for a supply of goods or services, or a sale or grant of an interest in land; and

(b)  at the time the contract is entered into, at least one party to the contract is a business that employs fewer than 20 persons; and

(c)  either of the following applies:

(i)  the upfront price payable under the contract does not exceed $300,000;

(ii)  the contract has a duration of more than 12 months and the upfront price payable under the contract does not exceed $1,000,000.

(5)  In counting the persons employed by a business for the purposes of paragraph (4)(b), a casual employee is not to be counted unless he or she is employed by the business on a regular and systematic basis.