Enter to open, tab to navigate, enter to select
Unfair contract term (ACL)
Practical Law ANZ Glossary w-013-1088 (Approx. 3 pages)
Glossary
Unfair contract term (ACL)
For the purpose of the unfair contract terms regime under the Australian Consumer Law (ACL), an unfair contract term is a term of a consumer contract or small business contract that:
- Would cause a significant imbalance in the parties' rights and obligations arising under the contract.
- Is not reasonably necessary in order to protect the legitimate interests of the party who would be advantaged by the term.
- Would cause detriment (whether financial or otherwise) to a party if it were to be applied or relied on.
For more information, see Practice notes, Unfair or unjust contract claims and Unfair contract terms and protections for small businesses.
For a guide to Practical Law’s resources dealing with the unfair contract terms regime under the ACL, see Toolkit, Unfair contract terms.