Unfair contract terms for small business
From 12 November 2016, the existing unfair contract term protections for consumers will be extended to cover standard form small business contracts.
Small businesses enter into standard form contracts every day for financial products and services. Contracts for business loans, credit cards and client or broker agreements, for example, are almost certainly standard form contracts.
The new unfair contract term protections will apply to standard form small business contracts entered into, or renewed, on or after 12 November 2016, where the up-front price payable under the contract does not exceed $300,000 – or $1 million if the contract is for more than 12 months.