A standard form contract is an agreement that is offered on a 'take it or leave it' basis – that is, it has been prepared by one party before any discussions and presented to the other with little or no opportunity to negotiate the terms.
Standard form contracts are often used for the supply of goods and services by:
- telecommunication providers
- banks and other financial institutions
- motor vehicle rental companies
- electricity and gas providers.
It is assumed that an agreement is a standard form contract unless the party that prepared the contract is able to prove that it isn’t (e.g. by demonstrating a real willingness to make requested changes to key terms).
While most standard form contracts will be covered by the unfair contract terms law, there are a number of exceptions. For example, certain insurance contracts will not be covered.
For more information about the exceptions to the unfair contract terms law, visit the Unfair contract terms page.