Unfair or Fake Contract Terms and Small Businesses

Unfair or fake contract terms and small businesses

A regulation protecting small groups from unfair agreement terms in standard form contracts applies to contracts entered into or renewed on or after 12 November 2016, wherein:

  • it is for the deliver of goods or services or the sale or provide of the hobby in land
  • at the least one of the businesses employs fewer than 20 people
  • the price of the contract is no greater than $300,000 or $1 million if the agreement is for extra than 12 months.
  • For extra information on the unfair agreement, phrases go to the ACCC website.
  • Before signing a settlement

Before you signal an agreement:

  • study every word, including the first-class print
  • ensure that it reflects the phrases and conditions that had been negotiated
  • seek prison advice
  • permit masses of time to keep in mind and understand the agreement
  • don’t be pressured into signing anything if you are unsure
  • in no way depart blank spaces on a signed agreement – pass them out if you have nothing to feature so they can’t be altered later
  • make sure which you and the opposite birthday party initial any modifications to the settlement
  • acquire a duplicate of the signed settlement on your records.

Once you’ve signed a settlement you may now not be able to get out of it with out compensating the other celebration for their real loss and expenses. Compensation to the other birthday celebration could consist of additional court charges if the opposite party takes their claim against you to court. Some contracts may allow you to terminate early, with or without having to pay reimbursement to the opposite birthday celebration. You should seek legal advice in case you need to consist of an opting-out clause.


If it isn’t always possible to have a written settlement make certain you have got other documentation which includes emails, quotes, or notes approximately your discussions to help you identify what changed into agreed.

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