Victorian Consolidated Legislation

Fair Trading Act 1999 - SECT 32Y

Effect of unfair term

32Y. Effect of unfair term



(1) An unfair term in a consumer contract is void.



(2) A prescribed unfair term-

   (a)  in a standard form contract to which the
        Consumer Credit (Victoria) Act 1995 applies is unenforceable from the
        time the unfair term is prescribed;

   (b)  in any other standard form contract is void.

(3) The contract will continue to bind the parties if it is capable of
existing without the unfair term or the prescribed unfair term.

(4) Subsection (1) applies to any consumer contract entered into on or after
the commencement of section 12 of the Fair Trading (Amendment) Act 2003.

(5) Subsection (2) applies to any standard form contract whether entered into
before or after the term is prescribed.