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MOTOR DEALERS AND REPAIRERS ACT 2013 - SECT 142
Unfair contracts
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.
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