Explain the concept of unfair contract terms

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Reference no: EM133201377 , Length: word count:2500

Business Law in Action

You work for a newly established IT business, SOP, with a parent company in Germany. Your boss is Zoe. She used to be the sales manager of a competing business. Zoe has not studied business law.

You have identified the fact that the state of New South Wales is a major procurer of IT systems. You have come across the form of contract that is used by NSW in Week 2 of your course TABL2721. You have sent a copy of the NSW ICT Agreement and NSW Master ICT Agreement to Zoe.

Zoe is not known for her tolerance of rules (or tolerance generally). She has sent you the following email:
The NSW Agreements are far too complicated for the type of project that we are offering. I have amended the draft and you can send this to NSW. I think that there is confusion. I don't understand why this agreement is not "signed, sealed and delivered". I don't think that it's even valid! Some of the terms in the agreement are unfair. We're a small business and unfair contract terms are prohibited in contracts - you should know this and so should NSW!

Fix it! Zoe
You task is in three parts:

Question 1: Explain to Zoe why the 8 points that Zoe has made by amending or deleting clauses are important to SOP, as well as to NSW. In doing this, you will need to address all of Zoe's comments.

Question 2: Explain to Zoe when a deed is used and when an agreement applies.

Question 3: Explain the concept of "unfair contract terms" in the context of the NSW ICT Agreement.

Reference no: EM133201377

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