When Does the Contracts Review Act Apply?
The Contracts Review Act (CRA) is a piece of legislation that was enacted to protect consumers from unfair contracts. The CRA applies to various types of contracts, but there are certain conditions that must be met for the Act to come into effect.
Here are the key factors that determine when the CRA applies:
1. Consumer Contracts
The CRA applies to contracts made between consumers and traders. This means that if you sign a contract with a business or company, the CRA may apply if you are considered a consumer.
2. Unfair Contracts
The CRA only applies to contracts that are considered unfair. An unfair contract is one that is written in a way that gives an unfair advantage to the trader over the consumer. Unfair terms can include provisions that are difficult to understand, hidden fees, or terms that are overly restrictive.
3. Small Business Contracts
The CRA also applies to contracts between small businesses and larger corporations. This is because small businesses often have limited bargaining power, which puts them at a disadvantage when negotiating contracts.
4. Non-Exempt Contracts
There are certain types of contracts that are exempt from the CRA. These include contracts for the sale of land, contracts for personal services, and contracts for the sale of goods or services for commercial purposes.
5. Jurisdiction
The CRA only applies to contracts that are made within the jurisdiction of the state or territory in which the contract is signed. This means that if you sign a contract in one state, but it is governed by the laws of another state, the CRA may not apply.
In conclusion, the CRA is a valuable tool for consumers and small businesses to protect themselves from unfair contracts. However, it is important to note that the Act only applies to certain types of contracts and under certain conditions. As a consumer or business owner, it is always a good idea to read contracts carefully and seek legal advice if you have any doubts about the fairness of the terms.