Types of terms that may be unfair
The law sets out examples of clauses in a contract that may be unfair, including terms that enable one party (but not the other) to:
- vary the terms of the contract (e.g. change its prices or services at any time without prior notice)
- automatically renew a contract without the other party’s express consent
- avoid or limit their obligations under the contract (e.g. limit the contract provider’s liability where they have acted negligently)
- terminate the contract
- penalise the other party for breaching or terminating the contract.
Importantly, the law will not apply to terms that:
- define the main subject matter of the contract
- set the upfront price payable under the contract
- are required or expressly permitted by another law.