Business Law In Australia Essay

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Small businesses often feel the brunt of bad deals when it comes to corporate affairs. Unfair terms often result in smaller enterprises getting the short end of the stick. Thankfully, new laws are soon to be implemented in Australia that are geared towards tipping the scales in the favour of the small business. This post hopes to outline some of the main takeaways surrounding these changes to the law.

When Will The New Laws Come Into Effect?
The new laws are to be put in place on or after 12 November, 2016. The new laws are to be found in the Australian Consumer Law and Australian Securities and Investments Commission Act. As of this date, these new protections for small businesses will be applied to standard form contracts. There are a few …show more content…

● There must be at least one small business involved.
● The upfront price to be paid under the contract cannot exceed $300,00, or $1 million if the contract will extend a period of 12 months.

What Defines A Standard Form Contract?
In short, a standard form contract is a contract that has been outlined by one side of the party involved, but the other party involved has no way to negotiate what has been prepared.

What Makes A Contract Unfair?
Generally, a contract term can be deemed unfair if it causes an imbalance in the affected parties rights and obligations outlined in the contract. Terms are also unfair if they are unnecessary to the protection of the advantageous party. Finally, if a term causes detriment to the party involved, then it is known as unfair.

What New Protections Will Be Made Available?
These laws will help small businesses in their application to courts or tribunals if they wish to challenge unfair terms in a standard form contract. If successful, the small business can void the contract.

What Exceptions Are There?
These new laws exclude a few specific contracts and terms, which are outlined

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