Contracts and unfair contract terms

There are laws to protect consumers from unfair terms in standard form contracts.

When you need legal advice

Get legal advice if:

  • you think your contract contains an unfair term
  • you have concerns about what the other person or company said that convinced you to sign a contract
  • you have signed a contract and the other person or company hasn’t done what they are required to do under the contract
  • you have questions about a contract
  • you are considering applying to the Queensland Civil and Administrative Tribunal (QCAT) or court to resolve a debt dispute
  • you have an order from QCAT or the court showing someone owes you money, but they still won't pay
  • another party has an order from QCAT or the court showing you owe them money.

How to get legal advice

Making a contract

A contract is a legally binding agreement. Some contracts are made verbally, while others must be in writing. It is possible for a contract to be partly written and partly verbal.

When making a contract, the law says you need to have:

  • an offer that is made and accepted
  • all essential elements of the contract included, for example, sale price, item description, method for calculating the due date of payments
  • each person agreeing to do something under the contract
  • intention to create the contract, for example, if the contract is between you and friends or relatives, it can be difficult to show the agreement was intended to be legally binding.

Contracts made by children

People under 18 may make a binding contract about the necessities of their life if they understand the significance of their decision.

Each legal situation needs to be assessed on its merits.

You should get legal advice if you are under 18 and have entered into a contract.

Unfair contracts

Unfair contract laws apply to standard consumer and insurance contracts only.

National laws protect consumers from unfair terms in standard contracts—these are contracts where consumers have limited opportunities to negotiate the terms.

A contract term is unfair if:

  • it would create a significant imbalance in the buyer and seller's rights and obligations
  • it’s not necessary to protect the interests of the person who benefits from the term
  • it would cause harm or loss, financial or otherwise, to the other person.

Examples of unfair contract terms include:

  • one person is allowed to terminate the contract, but the other isn’t
  • one person can change the contract terms, but the other can’t
  • one person avoids obligations under the contract, but the other doesn’t.

Only a court can legally declare a contract term is unfair.

What you can do about unfair contract terms

Get legal advice about how to raise the issue with the company or person you have signed the contract with.

You can make a complaint:

These organisations can take a business to court to have the terms in a standard contract declared unfair.

Find out more about:

How to get legal advice

We don’t provide advice to businesses or companies.

We may give legal advice about contracts and unfair contract terms.

Contact us

Other places to get legal advice:

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Related information

Disclaimer: This content is for general purposes only and not legal advice. If you have a legal problem, please contact us or speak to a lawyer. View our full disclaimer.

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