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Fair Trading Act 1986

Schedule 1AA: Transitional, savings, and related provisions

You could also call this:

"Rules to Help Make Contracts Fair"

Illustration for Fair Trading Act 1986

You need to know about some rules that apply to contracts. These rules are part of the Fair Trading Act 1986. They help keep contracts fair. Some contracts are not covered by these rules. These include contracts made before a certain date that have not been changed or renewed. They also include some insurance contracts. If a contract was made before a certain date and is then changed or renewed, it is treated as a new contract. This means the new rules apply to it. You can find more information about these rules in sections 26B to 26E. There are also rules about when these changes apply. You can find more information about this in Part 3 of the Legislation Act 2019 and sections 202 to 215 of the Grocery Industry Competition Act 2023. These rules help you understand how contracts work.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS737837.

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Schedule 1: Enactment amended, or

"Changes made to other laws as part of the Fair Trading Act 1986"

1AATransitional, savings, and related provisions Empowered by s 2A

1Provision relating to Fair Trading Amendment Act 2021

1Unfair contract terms in standard form small trade contracts

  1. Sections 26B to 26E do not apply to the following contracts (which, accordingly, are not small trade contracts and must be disregarded when determining which contracts form part of a trading relationship for the purposes of those sections):

  2. a contract entered into before the commencement date and not varied or renewed on or after that date:
    1. a relevant insurance agreement.

      1. If a contract entered into before the commencement date is varied or renewed on or after that date and is not a relevant insurance agreement, the contract (as varied or renewed) must be treated for the purposes of sections 26B to 26E as a new contract entered into on the date of the variation or renewal.

      2. In this clause,—

        commencement date means the date on which sections 26B to 26E come into force

          relevant insurance agreement means—

          1. a contract of insurance (as defined in section 7 of the Insurance (Prudential Supervision) Act 2010) entered into before the specified date, including as varied or renewed at any time; or
            1. a new contract that has the effect of operating as a renewal of a contract described in paragraph (a) or this paragraph, including as varied or renewed at any time

              specified date means—

              1. the date that is the third anniversary of Royal assent of the Contracts of Insurance (Repeals and Amendments) Act 2024; or
                1. if an earlier date is specified under subclause (4), that date.

                2. The Governor-General may, by Order in Council, specify a date for the purposes of paragraph (b) of the definition of specified date in subclause (3).

                3. An Order in Council made under subclause (4) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                Notes
                • Schedule 1AA clause 1: inserted, on , by section 21 of the Fair Trading Amendment Act 2021 (2021 No 32).
                • Schedule 1AA clause 1(3) specified date paragraph (a): replaced, on , by section 12(1) of the Contracts of Insurance (Repeals and Amendments) Act 2024 (2024 No 47).

                2Provision relating to Grocery Industry Competition Act 2023

                2Unfair contract terms in standard form trade contracts

                1. New sections 26B to 26E do not apply to the following contracts:

                2. a contract entered into before the commencement date and not varied or renewed on or after that date:
                  1. a relevant insurance agreement.

                    1. In addition, old sections 26B to 26E continue to apply to a contract if those sections applied to the contract immediately before the commencement date.

                    2. If a contract entered into before the commencement date is varied or renewed on or after that date and is not a relevant insurance agreement, the contract (as varied or renewed) must be treated for the purposes of new sections 26B to 26E as a new contract entered into on the date of the variation or renewal.

                    3. In this clause,—

                      commencement date means the date on which sections 202 to 215 of the Grocery Industry Competition Act 2023 come into force

                        new, in relation to a provision of this Act, means the provision as in force on and after the commencement date

                          old, in relation to a provision of this Act, means the provision as in force immediately before the commencement date

                            relevant insurance agreement has the same meaning as in clause 1 of this schedule.

                            Notes
                            • Schedule 1AA clause 2: inserted, on , by section 215(a) of the Grocery Industry Competition Act 2023 (2023 No 31).