Ever wondered about unfair Contract terms?
From 12 November 2016, small businesses now have protection from unfair contract terms
What is a small business contract?
A small business contract is a contract for the supply of goods or services, or a sale or grant of land, where at the date of the contract, one of the parties is a small business that employs less than 20 employees, the upfront price for the contract does not exceed $300,000 or, if the contract duration is for longer than 12 months, the upfront price payable does not exceed $1 million. The protection extends only to standard form contracts.
What is an “unfair” contract term?
This is a term in the Contract as a result of an imbalance of bargaining power, usually presented on a “take it or leave it” basis where there is no opportunity to negotiate a contract which would otherwise be tailored to the transaction.
Some examples would be where only one party has the right to terminate or vary the Contract, where one party can assign their interests without consent or where only one party can penalise the other for breach or termination.
If you are a small business and have concerns over any standard form contracts which are new or coming up for renewal give us a call, we’re here to help!
You’re in expert hands.