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Unfair contract terms Office of Fair Trading

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Unfair contract terms Office of Fair Trading Powered By Docstoc
					                                                                       www.fairtrading.qld.gov.au




Office of Fair Trading


Unfair contract terms


Those in the business of running training courses are regulated by the
Department of Education. Do contracts for training courses come under the
unfair contract terms?
Yes they can. A ‘consumer contract’ is a contract for the supply of goods or services to an
individual who is acquiring them predominantly for personal, domestic or household use or
consumption. There is no monetary limit for the definition of a consumer contract.

Read more about unfair contract terms or download A guide to the unfair contract terms law.


Do unfair contract terms provisions extend to mobile phone contracts?
Yes.

Read more about unfair contract terms.


Do unfair contract terms provisions apply to financial contracts and to
interest free contracts? Is it deemed to be unfair if it attracts 28% interest
rate?
Yes. The Australian Securities and Investment Commission Act 2001 regulates unfair contract
terms in consumer contracts for financial products and services

A term about a 28% interest rate would not be covered because unfair contract term provisions do
not apply to terms about prices.

Read more about unfair contract terms or download A guide to the unfair contract terms law.

To find out more about how the unfair contract terms law applies to financial contracts, visit the
Australian Securities and Investment Commission website.


Do unfair contract terms provisions apply to written contracts?
Yes, if they are standard form consumer contracts. Standard form consumer contracts are those
contracts where consumers are not given an opportunity to meaningfully negotiate or change any
of the terms and conditions.
Would the standard Real Estate Institute of Queensland (REIQ) contract be
considered a standard form consumer contract under the ACL?
Yes. A contract is considered to be a standard form contract until proven otherwise. Standard
industry contracts would be considered a consumer contract if it is for the supply of goods or
services to an individual for personal, domestic or household use.


Are certain contracts exempt from unfair contract terms legislation?
Yes, the unfair contract terms laws do not apply to:
     business to business contracts for supply of goods or services
     shipping contracts
     constitutions of companies, managed investment schemes or other kinds of bodies
     insurance contracts.

Read more about unfair contract terms or download A guide to the unfair contract terms law.


If a standard form contract is entered into for the purchase of a vehicle using
a business name, do the unfair contract terms provisions still apply?
No. The contract must be in relation to personal, domestic or household use.


Is use of the term ‘E & OE’ (errors and omissions excepted) affected by the
ACL?
Until the term has been tested in court as an unfair term, it is not affected by the ACL.

However when writing contracts, you should consider if the term ‘errors and omissions excepted’
fits the below determinants of an unfair term:
      would cause a significant imbalance in the parties’ rights and obligations
      it is not necessary to protect the legitimate interests of the party who would be advantaged
         by the term
      would cause detriment to a party if it was to be applied.

Read more about unfair contract terms or download A guide to the unfair contract terms law.

				
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posted:10/18/2012
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