Treasury has released a consultation paper on Extending Unfair Contract Term Protections to Small Businesses.

Examples of possible unfair contract terms in the paper include:

• a term that allows the bigger business to unilaterally change the price or other key terms during the course of the contract
• a term that denies a small business the right to terminate a contract
• when the bigger business can or inappropriately limits the bigger business’s contractual liability to a small business.

As well as discussing an appropriate definition of “small business”, the paper asks whether the extension should cover financial products and services.