Document ID: chunk:federal_register_of_legislation:C2025C00182:section:12bg
Version: federal_register_of_legislation:C2025C00182
Segment Type: section
Provision Reference: s 12BG
Character Range: 95050–96209

12BG  Meaning of unfair
 (1) A term of a contract referred to in section 12BF is unfair 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 applied or relied on.
 (2) In determining whether a term of a contract is unfair under subsection (1), a court may take into account such matters as it thinks relevant, but must take into account the following:
 (b) the extent to which the term is transparent;
 (c) the contract as a whole.
 (3) A term is transparent if the term is:
 (a) expressed in reasonably plain language; and
 (b) legible; and
 (c) presented clearly; and
 (d) readily available to any party affected by the term.
 (4) For the purposes of paragraph (1)(b), a term of a contract is presumed not to be reasonably necessary in order to protect the legitimate interests of the party who would be advantaged by the term, unless that party proves otherwise.