new laws to make contracts less "un-fairer"

​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:  

• for the supply of goods or services
• land sale agreements
• at least one of the parties is a small business/sole trader 
• an upfront price is payable to a certain level ($300,000 or $1 Million depending on the length of the relevant agreement)  

​For existing contracts even if it is varied after 12 November the laws will apply to the varied terms. 

Types of terms of contracts that will be effected 
The new law sets out examples of terms that may be unfair, including:

• terms that only enable one party (but not another) to avoid or limit their obligations under the contract
• terms that only enable one party (but not another) to terminate the contract
• terms that only penalise one party (but not another) for breaching or terminating the contract
• terms that only enable one party (but not another) to vary the terms of the contract

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. 

While most standard form contracts and contractual terms will be covered by the unfair contract terms law, there are a number of particular contracts that will not be effected;

• Contracts entered into before 12 November 2016 (unless they are renewed or amended on or after this date)
• Shipping contracts
• Company Constitutions
• Some  insurance contracts
• Contracts in sectors exempted by the Minister – no sectors are currently exempt.

Many many entertainment and creative industries contacts will however be effected

Festival Artist Agreement	​Writer’s Agreements	Freelancer Agreements	​​Writer’s Agreements
​General Service Agreements	​Booking Contracts	​Crew Agreements	​Some recording contracts
Third Party Merchandise Agreements	​Film Contracts	Talent Agreements	​Terms of business agreement
On Line Service Agreements	Consultancy Agreements	​Terms of business agreement	​​Reality TV Agreements
Production Supply Agreement	​Composer agreement	Employment Contracts	​Reality TV Agreements