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Fair Trading Act 1986

Unfair conduct - Unfair contract terms

26B: Unfair contract terms in standard form small trade contracts

You could also call this:

“Rules about unfair parts in small business contracts”

If a court has said that a term in a standard form small trade contract is unfair, you must not do two things. First, you can’t put that unfair term in any standard form contract, unless you do it in a way that follows what the court said. Second, you can’t use, enforce, or rely on that unfair term in any standard form contract. This rule helps protect people and businesses from unfair terms in their contracts.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS736908.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection
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26A: Unfair contract terms in standard form consumer contracts, or

“Rules to stop businesses from using unfair terms in their contracts with customers”

Next

26C: Definition of small trade contract, or

“Explaining what counts as a small business agreement”

Part 1 Unfair conduct
Unfair contract terms

26BUnfair contract terms in standard form small trade contracts

  1. If a court has declared, under section 46I, that a term in a standard form small trade contract is an unfair contract term, a person must not—

  2. include the unfair contract term in a standard form contract (unless the term is included in a way that complies with the terms (if any) of the decision of the court); or
    1. apply, enforce, or rely on the unfair contract term in a standard form contract.

      Notes
      • Section 26B: inserted, on , by section 7 of the Fair Trading Amendment Act 2021 (2021 No 32).