Unfair contract terms extended to small business

A new law, introduced from 12 November 2016, will protect small businesses from unfair terms in standard form contracts. A standard form contract is one that has been prepared by one party to the contract and where the other party has little or no opportunity to negotiate the terms. Small businesses enter into and renew standard form contracts regularly, especially between large suppliers such as lenders, insurance companies and telecommunications. The new law will apply to a standard form contract entered into or renewed on or after 12 November 2016, where: It is for the supply of goods and services or the sale or grant of an interest in land At least one of the parties is a small business (employs less than 20 people) The upfront price payable under the contract is no more than $300,000 or $1 million..