Has another business offered you a standard form contract? Or do you offer standard form contracts to other businesses? If so, you need to be aware of the new law that protects small businesses from unfair contract terms.
This new law will apply to standard form contracts entered into or renewed on or after 12 November 2016 where:
- at least one of the businesses employs less than 20 people, and
- the price of the contract is no more than $300 000, or $1 million if the contract is for more than 12 months.
The Australian Securities and Investments Commission (ACCC) and state and territory offices of Fair Trading will enforce this law, and if the court finds a term unfair, that particular term will be void and treated as if it never existed.