New South Wales Consolidated Acts

MOTOR DEALERS AND REPAIRERS ACT 2013 - SECT 142

142 Unfair contracts

(1) A term of a supply contract is
"unfair" for the purposes of this Part if--

(a) it would cause a significant imbalance in the parties' rights and obligations arising under the contract, and

(b) it is not reasonably necessary in order to protect the legitimate interests of the party who would be advantaged by the term, and

(c) it would cause detriment (whether financial or otherwise) to a party if it were to be relied on.

(2) Without limiting subsection (1), the following are examples of terms of supply contracts that may be unfair--

(a) a term that permits, or has the effect of permitting, one party (but not another party) to avoid or limit performance of the contract,

(b) a term that permits, or has the effect of permitting, one party (but not another party) to terminate the contract,

(c) a term that penalises, or has the effect of penalising, one party (but not another party) for a breach or termination of the contract,

(d) a term that permits, or has the effect of permitting, one party (but not another party) to vary the terms of the contract,

(e) a term that permits, or has the effect of permitting, one party unilaterally to vary the characteristics of the goods to be supplied under the contract,

(f) a term that permits, or has the effect of permitting, one party unilaterally to vary the goods required to be sold or the place at which goods are required to be sold by the motor dealer,

(g) a term that unreasonably limits, or has the effect of unreasonably limiting, the assignment by the motor dealer of the motor dealer's rights under the contract or the sale of the motor dealer's business,

(h) a term that limits, or has the effect of limiting, one party's rights to sue another party.