Australian Consumer Law (Competition and Consumer Act 2010 Schedule 2)
Chapter 2 Part 2-3: Unfair contract terms – Australian Consumer Law (Competition and Consumer Act 2010 Schedule 2)

Australian Consumer Law (Competition and Consumer Act 2010 Schedule 2) s23-2C: s 23(2C) Do not apply or rely on an unfair term of a standard form consumer or small business contract

A business must not apply, rely on, or purport to apply or rely on, an unfair term of a standard form consumer contract or small business contract. An unfair term is void, and the rest of the contract continues if it can operate without it (s 23(1) and (2)). Terms that define the main subject matter, set the upfront price disclosed before contracting, or are required, permitted or included by law are outside the test (s 26); certain shipping, company constitution, prescribed small business, payment system and financial market contracts are excluded (ss 28 and 28A). A contract is presumed to be standard form if a party alleges it, having regard to bargaining power, prior identical contracts, preparation before discussion, take-it-or-leave-it presentation, opportunity to negotiate and whether the terms reflect the particular transaction (s 27).

Maintained by Gerard Blokdyk

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