But what exactly does that mean:
From 9 November 2023 Australia’s unfair contract terms regime will apply to a much, much larger pool of contracts than it has in the past. This shift will ensure that consumers and small businesses retain a robust level of protection when entering into new or varied standard form contracts. Businesses that might previously have been comfortable that the regime did not affect them, now need to take notice. At the same time, the regime now attracts significantly increased penalties for non-compliance than it has in the past.
If you are a business that uses any kind of template agreement you should assess who it is that is entering the contract. If you a providing this contract to a consumer, a business with less than 100 employees or a business that earns less than $10 million in annual turnover, these changes may affect you.
Standard form contracts are common and often used in every day terms and conditions agreements, template non-disclosure agreements, template lease agreements, template purchase order/supply terms and conditions, template guarantees and template agency or franchise agreements.
Terms that will no longer be allowed in standard form contracts include:
Consideration must also be given to the transparency of the terms and the agreement as a whole.