spacer spacer spacer spacer spacer spacer spacer spacer
spacer
spacer
    Latest Accounting News

Telephone: 03 9727 1244
Facsimile: 03 9727 0244
Email: Email Us

Address: Suite 2, 96 Manchester Rd, Mooroolbark VIC 3138
spacer
Hot Issues
ATO reveals common rental property errors from data-matching program
New SMSF expense rules: what you need to know
Government releases details on luxury car tax changes
Treasurer unveils design details for payday super
6 steps to create a mentally healthy and vibrant workplace
What are the government’s intentions with negative gearing?
Small business decries ‘unfair’ payday super changes
The Leaders Who Refused to Step Down 1939 - 2024
Time for a superannuation check-up?
Scam alert: fake ASIC branding on social media
Millions of landlords the target of expanded ATO crackdown
Government urged to exempt small firms from TPB reforms
ATO warns businesses on looming TPAR deadline
How to read a Balance Sheet
Unregistered or Registered Trade Marks?
Most Popular Operating Systems 1999 - 2022
7 Steps to Dealing With a Legal Issue or Dispute
How Do I Resolve a Dispute With My Supplier?
Changes to Casual Employment in August 2024
Temporary FBT break lifts plug-in hybrid sales 130%
The five reasons why the $A is likely to rise further - if recession is avoided
June quarter inflation data reduces risk of rate risk
‘Bleisure’ travel claims in ATO sights, experts warn
Taxing unrealised gains in superannuation under Division 296
Most Gold Medals in Summer Olympic Games (1896-2024)
Estate planning considerations
5 checklists to support your business
Are you receiving Personal Services Income?
What Employment Contracts Does My Small Business Need?
The superannuation changes from 1 July
Hasty lodgers twice as likely to make mistakes, ATO warns
Landlords who ‘double dip’, fudge deductions in ATO crosshairs
Most Spoken Languages in the World
Articles archive
Quarter 2 April - June 2024
Quarter 1 January - March 2024
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
How to Draft a Standard Form Contract

A standard form contract is a pre-written contract used repeatedly for a particular type of transaction.



.


These contracts are common when one party has more bargaining power than another, such as in consumer or employment contracts. Standard form contracts are sometimes called “take it or leave it” contracts because the party with less bargaining power may not be able to negotiate the contract’s terms.


Considerations When Drafting a Standard Form Contract


There is no legal definition setting out the requirements of a standard form contract. However, where a contract is considered standard form, the unfair contract terms regime will apply if one party to the contract has:


  • 100 or fewer employees; or
  • less than $10 million in annual turnover.

The following drafting considerations may assist in mitigating the risk of a standard form contract being considered unfair. These considerations are designed to protect consumers and ensure that they are not unfairly disadvantaged by the terms of the contract.


The key requirements are as follows.


1. Plain Language


Standard form contracts should be written in plain language that is easy to understand. This means you should avoid using legal jargon or technical terms.


2. Clarity


The contract should avoid using vague or uncertain language that parties can interpret in multiple ways. Ambiguous and uncertain terms are likely to be a source of confusion and conflict in the future.


3. Transparency


The contract should be easily accessible and provided to the consumer in a clear and understandable way.


4. No Unfair Terms


The contract should not contain any unfair or disadvantageous terms unless the term is reasonably necessary to protect the business’s legitimate interests. This includes terms that: 


  • allow one party to vary the terms of the contract unilaterally; 
  • allow one party to avoid liability for negligence; and 
  • limit the consumer’s rights to seek legal redress.

5. Notice of Terms


Ensure you provide the contract to the consumer in a way that allows them to read and understand the contract terms before they agree to them.


What Will a Court Consider When Determining if a Contract is Standard Form


The Australian Competition and Consumer Commission (ACCC) provides that, in determining whether a contract is standard form, a court may take into account any relevant matter. However, at a minimum, they must consider whether:


  • the party that prepared the contract has all or most of the bargaining power in the transaction;
  • the contract was prepared without or before any discussion between the parties about the transaction;
  • the other party could only accept or reject the terms of the contract as presented;
  • the other party was offered any real opportunity to discuss the terms of the contract; and 
  • the terms of the contract consider any specific features of the other party or the transaction.

Why are Standard Form Contracts Used?


Standard form contracts are common when one party has more bargaining power than the other. For example, in consumer transactions, the seller may have more bargaining power than the buyer, and may be able to impose standard terms on the buyer. Similarly, in employment contracts, the employer may have more bargaining power than the employee and may be able to impose standard terms on the employee.


While standard form contracts can be useful in some situations, they can also be problematic if the contract terms are unfair or disadvantageous to the consumer. 


Key Takeaways


A standard form contract is a pre-written contract used repeatedly for a particular type of transaction. The prohibition of unfair contract terms is designed to protect consumers and ensure they are not unfairly disadvantaged by the contract terms. Therefore, if you are providing a standard form contract to your customers, you should carefully review the terms of the contract to ensure it does not contain any unfair terms. 


 


 


 


Jordan Bramis
June 9
legalvision.com.au




18th-June-2024
 
sitemap | site by AcctWeb