The Ministry of Consumer Affairs has been giving some thought to outlawing unfair contract terms under their review of consumer law.
Essentially the Ministry sees some clauses in standard type contracts being unfair to consumers and they want to have them banned by statute. A recent Sunday Star Times article gives some good examples of the effect these clauses.
Cash Flow Doctors believes that there is a good chance that these changes will be made - there is after all unfair contract terms legislation already in place in Australia and the UK. They would also seem to be a reasonable thing to do.
HOW DOES THIS EFFECT YOU?
If you are considering setting up a terms of trade or standard contact it bears to keep in mind about 'unfair' clauses. This doesn't mean you should not put a new terms of trade in place but keep in mind the intended changes to the law.
If you have terms of trade already you don't have to do anything at present. We will be advising our clients via our newsletter when (and if) any changes do take place so sign up now.
For Cash Flow Doctors clients we will contact you all if necessary to update your current documentation as required as part of our regular update process.
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