Date of this Version
This presentation will consider the new unfair contract terms provisions outlined in the Australian Consumer Law (ACL). The ACL is part of the Competition and Consumer Law Act 2010 (Cth) that commenced in 2 stages - on 1 July 2010 and 1 January 2011. The ACL has now provided a statutory framework regarding the effect of unfair terms within a broad range of consumer contracts – including property contracts. It departs significantly from the classical contract theory and moves toward statutory and judicial intervention in assessing the fairness of contract terms.
An unfair term in a standard form consumer contract will be void. This presentation will consider the likely impact of the ACL on property transactions on property contracts that fall within the definition of a 'consumer contract'. The presentation will also examine the classification principles of an 'unfair term' for the purposes of the ACL and suggest some measures to minimise the risk of breaching the ACL.