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AustraliaLegislation | Competition and Consumer Act 2010 (Cth)

Schedule 2: Australian Consumer Law

 

Section 23 Unfair terms of consumer contracts and small business contracts

(1) A term of a consumer contract or small business contract is void if:

(a) the term is unfair; and

(b) the contract is a standard form contract.

(2) The contract continues to bind the parties if it is capable of operating without the unfair term.

(3) A consumer contract is a contract for:

(a) a supply of goods or services; or

(b) a sale or grant of an interest in land; to an individual whose acquisition of the goods, services or interest is wholly or predominantly for personal, domestic or household use or consumption.

(4) A contract is a small business contract if:

(a) the contract is for a supply of goods or services, or a sale or grant of an interest in land; and

(b) at the time the contract is entered into, at least one party to the contract is a business that employs fewer than 20 persons; and

(c) either of the following applies:

(i) the upfront price payable under the contract does not exceed $300,000;

(ii) the contract has a duration of more than 12 months and the upfront price payable under the contract does not exceed $1,000,000.

(5) In counting the persons employed by a business for the purposes of paragraph (4)(b), a casual employee is not to be counted unless he or she is employed by the business on a regular and systematic basis.

 

Location of provision

Competition and Consumer Act 2010 (Cth) | Sch 2: Australian Consumer Law
Chapter 2 General Protections | Part 2-3 Unfair Contract Terms

 

Provision and legislative history based on content from the Federal Register of Legislation at 18 September 2018. For the latest information on Australian Government law please go to https://www.legislation.gov.au