Did you know there’s a new law in town? One that may affect your business dealings.
In November 2015, an amendment passed that protects small businesses from‘unfair’ terms in standard form contracts.
You need to act now!
You have until November to update your agreements, to ensure there is enough time to obtain legal advice and socialise any changes.
Which contracts are we talking about?
• at least one party is a business that employs fewer than 20 people
• the upfront price payable under the contract is:
– $300,000 or less
– $1,000,000 or less (if the contract is for more than 12 months)
• the contract is a standard form contract*
Word to the wise: Fair Work will be on the look-out for ‘unfair’ terms relating to varying or terminating the contract in question – and anything to do withassigning a contract without consent.
Find more information here on what is meant by ‘unfair’.
What happens if a term is deemed unfair?
That term will be void – not binding on parties to the contract. The rest of the contract will continue to bind the parties if it is capable of operating without the unfair term.
To cover your bases, review any agreements that fall within the definition of a small business contract.
Still don’t understand this legal mumbo-jumbo? Getting help is as easy as 1.. 2.. 3..
1) Call our Legal Advice Line 13 29 59
2) Talk to us about our new service, Workplace Assured 1300 573 394
3) Speak to our lawyers about our Fixed Price Legal Service
Good luck and remember, we’re here for your business.
General Manager, Member Services
NSW Business Chamber
*meaning a pre-prepared contract that is not generally negotiated) for the supply of goods or services or grant of an interest in land.