As at 12 November 2016, a new laws will come into effect designed to protect small businesses from unfair terms in standard form contracts. Many entertainment and creative industries agreements will fall into the amendments.
The new laws will apply to all standard form contracts. Standard form contracts are those where one party has prepared the contract and the other party has little or no opportunity to negotiate., that is, it is offered on a ‘take it or leave it’ basis, including:
Types of terms of contracts that will be effected
The new law sets out examples of terms that may be unfair, including:
If a term is captured under the new laws, the term will be deemed a void, meaning it will be non-binding on either party.