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Discuss the issues of compliance and non-­‐compliance within consumer law.

Unjust contracts – common law and statutory clauses

A contract is an agreement involving two or more parties in which legal obligations are created that are legally enforceable. It does not have to be in writing but some form to be in order to have legal recognition. Moreover, contracts have a significance role is promoting compliance and restricting non compliance. Thus both common law and statue protection exists to improve protection against. unjust contracts. Common has evolved signfianctly and two of it’s more fundamental aspects in promoting just contracts include Duress and unconscionable dealing. Duress – actual or threatened violence if they do not sign. CASE LAW – Barton v Armstrong (1975), whereby Barton was forced to sell shares, however was overturned at Privy Council. Moreover, creating precedent of duress as a clause to make a contract invalid. Furthermore, unconscionable dealings are also banned under CASE LAW - Commercial Bank of Australia Ltd v. Amadio (1983). Whereby, defining it as “Unconscientious use of a superior position or bargaining power to the detriment of a party who suffers from a special disability”. While the common law provides mechanisms for remedying injustice, they were fairly limited and were often difficult to prove in court. Additionally, Statutory protection for consumers has increased considerably over recent years. Hence establishing a cooling off periods as under Fair Trading Act 1987 (NSW) a 10 day cooling off period is provided for door to door sales. Now covered in the ACL 2010. Furthermore, Unconscionable conduct under the ACL 2010 refers to harsh or unfair behaviour by a stronger party. Hence providing a clause that restricts businesses to be

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