Australia: Unfair contract terms and small businesses: Examples and practical considerations

What are some examples of unfair contract terms?

There are a number of examples regarding the types of clauses which could be found to be unfair terms. The table below shows some but not all of the examples which may be relevant.

In some situations, the very type of clause highlighted below can actually be fair, reasonable and effective and it is important to think about each contract on a case by case basis. Not every type of clause below is unfair in every set of circumstances.

TYPE OF CLAUSE: LIMITED LIABILITY

Examples Practical Considerations
  • Clauses that limit liability irrespective of fault;
  • Clauses that do not provide for proportionate reduction in liability for contribution to the loss or damage by the other party.