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