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How Do Changes into the Unfair Contracts Law Affect My Car Wash Lease?

Do you operate a car wash? If you do, you will have unquestionably entered into a lease with your landlord or perhaps sublease with the tenant within the property. You may have also learned about recent legislative modifications to the unfair contracts regime that may influence your car wash let. What do these variations mean??What can I actually if I have been afflicted? We answer these kind of questions below.

What Will be the Changes to the Illegal Contracts Regime?

On Twelve November 2016, the?Treasury Regulations Amendment (Small Business plus Unfair Contract Terms) Behave 2016?(Unfair Contract Regulation) came into effect.

Previously, this unfair contracts routine only protected customers.?This amendment expands the protections provided by the Australian Client Law (ACL) and the Australian Securities and Investment Commission payment Act 2001 (Cth) (ASIC React) to small businesses who may have signed on to regular form contracts.

This suggests that the amendment will protect small businesses, just like your car wash, from above market contract terms in your rental.

Do These Changes Have an impact on My Car Wash Hire?

Changes to unfair legal contracts will affect your car or truck wash lease if perhaps:

  1. You have less than 20 employees;
  2. The car rental is a “standard form” contract (my spouse and i.e. the landlord or maybe sublessor uses the?hire?agreement for all of it has the premises);
  3. Assuming your car clean lease extends more than one year, then the importance of your contract is not a more than $1,000,1,000 up-front (or $300,000 when your lease is for just one year);
  4. You entered into, refurbished, or varied your car wash lease once 12 November 2016; and
  5. You wasn’t given an opportunity to bargain the “standard terms” on the car wash lease beyond the commercial terms.

Examples associated with Unfair Standard Terms and conditions in Car Wash Leases

If an individual satisfy the above conditions, then an unjust term in your car wash lease will likely be inoperable and void. Standard conditions found in car wash renting which might fall strong of the new regimen include:

  • A term which seeks to stop you by claiming compensation should the landlord or sublessor builds up an adjoining ton next to the car wash evidently this causes disruption to your business (e.r. the petrol sta owner decides to read up a?mechanic next to your car launder);
  • A term that suggests you must pay the?property owner or sublessor liquidated damages (we.e. compensation) in case the car wash is not saved open during described trading hours;
  • A name that appoints the landlord or sublessor as your attorney at law to sign written documents if you default within the lease; and
  • A term that will releases the landlord or perhaps sublessor from all liability, even if they do not perform their duties as a property manager or sublessor under the car wash lease.

The clauses mentioned above are not exhaustive. Most of these terms are likely judged unfair because:

  • The conditions cause a significant discrepancy of power involving the landlord/sublessor and you (i.orite. the terms usually are biased in favour of the landlord/sublessor);
  • These terms are not realistically necessary to protect the particular landlord/sublessor; and
  • The terms may cause a good detriment to you (your car wash operator).

If any terms in your car wash lease meet these criteria, then the Not fair Contract Law may additionally consider them above market.

What Can I Do Whenever My?Car Wash Book is Unfair?

Before entering into a lease, you will have a lawyer review the document for any unfair phrases. You should negotiate adjustments to make the lease an even more balanced and fairer document.

If you have currently entered into an unfair contract, the responsibility will be on you to take some action to prove how the terms are not fair. Alternatively, the ACCC may seek a assertion that certain terms be looked at unfair or gap. Importantly, in these situations the remainder of the lease will continue to operate.


If you are uncertain whether a particular clause in your car wash let is unfair, speak to our?leasing legal professionals?on 1300 544 755.

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