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Unfair contract terms

An unfair contract term:

  • doesn’t fairly divide the parties’ rights and obligations
  • are not reasonably necessary to protect the business
  • would cause loss or detriment (financial or otherwise) to a consumer.

Only a court can decide if a term in a consumer contract is unfair. If a court finds a term is unfair, that term is treated as if it never existed but the rest of the contract may still be binding.

If you think your contract is unfair and you cannot resolve the issue with the business we suggest you seek legal advice.

Updated: 27 May 2020

This page has been produced and published by the Consumer Building and Occupational Services Division of the Department of Justice. Although every care has been taken in production, no responsibility is accepted for the accuracy, completeness, or relevance to the user's purpose of the information. Those using it for whatever purpose are advised to verify it with the relevant government department, local government body or other source and to obtain any appropriate professional advice. The Crown, its officers, employees and agents do not accept liability however arising, including liability for negligence, for any loss resulting from the use of or reliance upon the information and/or reliance on its availability at any time.