Legal //
Understanding unfair
contract terms
By Jacqueline Ong
There would often be a “take it or
leave it approach” to contracts, putting
FROM November 12, the unfair contract
these businesses in a weak bargaining
terms legislation, which currently only
position. And because many of these
applies to consumers, will be expanded
smaller businesses lacked the time and
to include small businesses.
legal as well as technical expertise to
At a Victorian Waste Management
carefully review agreements, and many
Association seminar in June, Madgwicks
did not have in-house counsel, they
Lawyers partner Ed Browne detailed
were, for the most part, unable to push
how the new legislation would impact
back on contracts presented to them.
waste businesses.
Thus, a decision was made to change
the legislation so that it applied to
From consumer to small
small businesses from November 2016.
business
But what exactly is a small business?
While the unfair contract terms law
“It’s quite an interesting threshold.
was initially intended to protect
The law applies to a small business
consumers,
the
Commonwealth
contract as opposed to a small business
government, following a consultation
itself. So if one party to the contract
process in 2014, became aware that
is a business that employs fewer than
small businesses were ofte