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AUSTRALIAN CONSUMER LAW AND FAIR TRADING ACT 2012 - SECT 185

Additional powers of VCAT

    (1)     In addition to its powers under section 184 , VCAT, in determining a consumer dispute or a trader-trader dispute, may make any order it considers fair including declaring void any unjust term of a contract or otherwise varying a contract to avoid injustice.

    (2)     In determining whether a term of a contract is unjust under subsection (1), VCAT may have regard to—

        (a)     the intelligibility of the contract generally, and of the term in particular;

        (b)     the extent to which the term, and its legal and practical effect, were accurately explained to the relevant party before the term was agreed to and the extent to which the relevant party understood the term and its effect;

        (c)     the relative bargaining power of the parties to the contract;

        (d)     the consequences to the parties to the contract if the term is complied with or not complied with and the relative hardship of those consequences to each party;

        (e)     whether or not it was reasonably practicable for the relevant party to reject, or negotiate for a change in, the term before it was agreed to;

        (f)     the relationship of the term to the other terms of the contract;

        (g)     whether the relevant party obtained independent legal or other expert advice before agreeing to the term;

        (h)     whether unfair pressure, undue influence or unfair tactics were used to obtain the relevant party's consent to the contract or the term;

              (i)     whether at the time the term was agreed to the relevant party knew, or could probably have found out by asking, that the term would cause any other relevant party hardship;

        (j)     the conduct of the parties to the contract after the term was agreed to;

        (k)     whether the term is usually found in contracts of that kind;

        (l)     the justification for the term;

        (m)     whether the term is unconscionable, harsh or oppressive;

        (n)     any other factor VCAT thinks is relevant.

    (3)     Despite anything to the contrary in this section, in determining whether a term of a contract is unjust, VCAT must not have regard to any injustice arising from circumstances that were not reasonably foreseeable when the term was agreed to.

    (4)     In this section—

consumer dispute means a dispute relating to the supply or possible supply of goods or services of a kind ordinarily used for personal, household or domestic purposes but does not include a dispute relating to the supply or possible supply of goods if the supply or the possible supply of the goods is for the purpose of re-supply, in trade or commerce, or for the purpose of using the goods up or transforming the goods in trade or commerce;

trader-trader dispute means a dispute between a purchaser or possible purchaser and a supplier or possible supplier in relation to the supply or possible supply of goods or services in trade or commerce which involves—

        (a)     a claim for payment of money in an amount not exceeding $10 000; or

        (b)     a claim for performance of work of a value not exceeding $10 000.



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