If you enter into a credit contract, consumer lease, or buy-back transaction that breaks this Act, it does not automatically make the contract illegal. You enter into a contract that is still enforceable, unless this Act says otherwise. The fact that someone broke the Act when making or performing the contract does not make the whole contract useless, except in cases stated in the Act.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213527.

This page was last updated on 1 January 2026 — View changes

Topics:

Money and consumer rights > Consumer protection

135: No contracting out, or

"You can't agree to ignore this law, even if a contract says something different."

137: Conflict of laws, or

"This law applies to credit contracts that follow New Zealand rules."

Part 6Miscellaneous provisions

136Application of law relating to illegal contracts

The fact that a credit contract, a consumer lease, or a buy-back transaction has been entered into in breach of this Act, or that an act that breaches this Act has been committed in the course of the performance of any contract, lease, or transaction, does not—
make that contract, lease, or transaction illegal; or
make that contract, lease, or transaction or any provision of that contract, lease, or transaction unenforceable or of no effect, except as expressly provided in this Act.

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s 44