Australian Contract Law Should Be Codified - amazonia.fiocruz.br

Australian Contract Law Should Be Codified - sorry, that

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Standard form contracts are being subjected to increased scrutiny for unfair contract terms by regulators.

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On-line terms and conditions are of particular concern because consumers are often given no choice but to accept onerous or unfair terms if they wish to proceed with the purchase of goods or services. Restraint Australian Contract Law Should Be Codified trade and non-disparagement clauses which are often included in standard form contracts to protect the business, its goodwill and reputation, may be considered to be unfair by ACCC or the court if they extend beyond what is reasonably necessary to protect the legitimate interest of the business.

Businesses using standard form contracts or involved in e-commerce should review their terms and conditions for unfair terms to minimise the risk of terms being declared unfair and unenforceable. This update references recent enforcement activities by the ACCC and provides some strategies for risk minimisation.

The ACCC or a party to the contract may seek a declaration from the court that the term is unfair and void, an injunction restraining a party from relying or enforcing the term and compensation. ADT admitted that certain terms in its agreement which permitted ADT to unilaterally vary the terms of the Agreement or increase the fees payable by the customer were or were likely to be unfair within the meaning of section 24 of the ACL.

On 18 SeptemberBack In Motion Physiotherapy Pty Article source, a franchisor with a network of franchisees providing physiotherapy services in Australia and New Zealand, provided a court-enforceable undertaking to the ACCC not to enforce or rely upon restraint of trade clauses except as permitted in the court enforceable undertakings. The restraint of trade term restricts Back In Motion franchisees exiting the franchise system Australian Contract Law Should Be Codified offering physiotherapy services within a 10km radius of any Back In Motion franchise site throughout Australia for up to 12 months.

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The ACCC considered that the term could prevent former franchisees from offering physiotherapy services in metropolitan areas, including regions where former clients of the franchisee would not reside. The ACCC was concerned that the cascading restraint of trade term created significant uncertainty because there were 21 possible permutations of the term. Further, the contract included a term which required franchisees to pay a fee to the franchisor, equivalent to 4 times the annual royalty fee, to be released from the restraint.

The ACCC has also considered non-disparagement clauses, which intend https://amazonia.fiocruz.br/scdp/blog/culture-and-selfaeesteem/the-course-of-true-love-never-did.php prevent the publication of negative or damaging reviews, to be unfair contract terms if they prevent or limit a customer from making genuine, relevant and lawful public comments about goods Australian Contract Law Should Be Codified services.

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Businesses should regularly review their standard form contracts and terms and conditions for unfair terms to minimise the risk of terms being declared unfair and unenforceable. Assessing whether a term is unfair is complex and requires consideration of the contract as a whole taking into account the relative bargaining position of the parties and any imbalances. Because of the complexities involved, legal advice should be sought from lawyers with expertise in consumer law to ensure contracts Australian Contract Law Should Be Codified lawful, expressed in plain language, legible and clear. Legal Updates Newsletters Articles. The term goes beyond what is commercially necessary. The Fuji Xerox contracts do not provide customers with any corresponding or counterbalancing rights or protections, or provide customers with more limited rights and protections. The Fuji Xerox contracts do not allow customers to reject or negotiate without penalty if a variation is not acceptable.]