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Module7:UnconscionableConductandUnfairContractTermsRequiredReadings:TextbookChs5-7,mendedReading:Corones,chs5and6
LearningesThismodulewillenableyoutounderstandTheACLprovisionsonunconscionableconduct,andhowtheconceptappliestoprotectconsumersandbusiness;andTheACLprovisionsonunfaircontracttermsthatapplytoastandardformcontractConsequencesofthebreach
UnconscionableconductUnconscionableconduct–unwrittenlaw?s20oftheACLStatutoryunconscionableconduct?s21oftheACLNewInterpretatives22toaidthecourtintheinterpretationofs21Theconceptofunconscionableconductins21iswiderinscopethanitisins20oftheACL
Unconscionableconductwithinthemeaningoftheunwrittenlaw–ACLs20s20(1) Apersonmustnot,intradeorcommerce,engageinconductthatisunconscionable,withinthemeaningoftheunwrittenlawfromtimetotime. (2) Thissectiondoesnotapplytoconductthatisprohibitedbysection?21
Whatismeantby‘unwrittenlawfromtimetotime’?TheExplanatoryMemorandumstates:ArrayofcommonlawandequitableprinciplesthathavebeendevelopedintheAustraliancourtsovermanyyearsontheconceptofunconscionableconductPreviousjurisprudencedevelopedinthecourtsofEnglandandWalespriortotheindependenceoftheAustralianjudicialsystemDecisionsofthePrivyCouncilexercisingitsnowendedappellatejurisdictionoverStatecourts
HowtodeterminewhetheraconductisunconscionableCommercialBankofAustraliavAmadio(1983)151CLRClassiccaseonunconscionableconductinAustralia
Threequestionstobeasked:
Isoneofthepartiestothecontractatspecialdisadvantagebycomparisontotheotherparty,suchthatthespecialdisadvantagecreatesareasonabledegreeofinequalitybetweenthem?Isthestrongerpartyawareofthespecialdisadvantage?Isitunfairorunconscientiousofthestrongerparty,knowingofthisspecialdisadvantage,toenterthecon
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