Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

5C: No contracting out: general rule

You could also call this:

“Rules in this law apply no matter what, even if you make a different agreement”

You need to know that the rules in this law apply no matter what. Even if you make an agreement with someone that says something different, the law still applies. Any part of an agreement that tries to ignore or change what this law says won’t work.

There are two exceptions to this rule. First, if an agreement makes the supplier (like a shop or business) follow stricter rules than the law does, that’s okay. Second, if an agreement gives you a better way to solve problems with the supplier than the law does, that’s also okay.

When the law talks about an ‘agreement’, it means any kind of deal or understanding between people, not just official contracts.

Remember, there’s another part of the law called section 5D that has some more information about this rule.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156601.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection
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5B: Act does not apply to certain conduct regulated by Takeovers Code, or

“The Fair Trading Act doesn't cover company buying and selling rules”

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5D: No contracting out: exception for parties in trade, or

“Trading businesses can agree to different rules if it's fair”

5CNo contracting out: general rule

  1. The provisions of this Act have effect despite anything to the contrary in any agreement.

  2. A provision of an agreement that has the effect of overriding a provision of this Act (whether directly or indirectly) is unenforceable.

  3. Subsections (1) and (2) are subject to subsection (4) and section 5D.

  4. Nothing in subsection (1) or (2) applies in respect of a provision that—

  5. imposes a stricter duty on the supplier than would be imposed under this Act; or
    1. provides a more advantageous remedy against the supplier than would be provided under this Act.

      1. In this section and section 5D, agreement includes any contract, arrangement, or understanding.

      Notes
      • Section 5C: inserted, on , by section 8 of the Fair Trading Amendment Act 2013 (2013 No 143).