When are agreed damages clauses in contracts unenforceable penalty clauses rather than enforceable liquidated damages clauses?

When negotiating a contract the parties commonly think about what should happen in the event that the other party breaches a term of the contract. They may also wish to stipulate what should happen upon the occurrence of a certain event (which may not technically constitute a “breach” of the contract). The other party might […]

read more

Protection for small businesses against unfair contract terms : ss 23 – 28 of Schedule 2 to the Competition and Consumer Act 2010 (Cth)

BACKGROUND Following public consultation processes, new laws[1] came into force on 12 November 2016 which extended existing consumer protection laws against unfair contract terms to “small business contracts” (e.g. business to business contracts). Under these laws, small businesses can also have an “unfair” term in a “standard form contract” declared as void in specified circumstances. […]

read more