Commonwealth Consolidated Acts

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 81

Scope

  (1)   This section applies to a term in a contract if:

  (a)   the contract is between an account debtor and a transferor; and

  (b)   the term restricts or prohibits transfer of any of the following for currency due or to become due:

  (i)   the whole of an account that is the proceeds of inventory;

  (ii)   the whole of an account that arises from granting a right (other than a right granted under a construction contract), or providing services (other than financial services), in the ordinary course of a business of granting rights or providing services of that kind (whether or not the account debtor is the person to whom the right is granted or the services are provided);

  (iii)   the whole of an account that is the proceeds of an account mentioned in subparagraph   (ii);

  (iv)   chattel paper.

Statutory restriction on contracts

  (2)   The term in the contract:

  (a)   is binding on the transferor, but only to the extent of making the transferor liable in damages for breach of contract; and

  (b)   is unenforceable against third parties.