Yesterday the Australian Government released a discussion paper to seek views on possible reforms to contract law
The media release says the purpose is “to cut red tape for Australian businesses and to help them prosper in an increasingly globalised and digital economy.” What about Australian consumers? See this opinion piece for some ideas about what could be done.
Attorney-General Nicola Roxon said that while Australia performs well, currently ranked by the World Bank at 17 out of 183 countries for ease of enforcing contracts, we cannot afford to be complacent.
“Contract law is a complex mixture of common law, legislation, international agreements and the content of contracts themselves,” Ms Roxon said.
“For example, a contract to buy goods can be affected by common law rules, equitable principles, state and federal legislation, and UN conventions.
“By improving contract law we can help to cut red tape and make it easier and simpler for business to do business.”
Contract law is an essential base for economic activity, providing businesses and individuals the certainty and predictability needed to trade and invest with confidence.
Other countries are also considering reform of their contract law to increase efficiencies and boost productivity. For example, the European Commission identified potential gains of 26 billion Euros from the harmonisation of contract law across 27 European member states.
The discussion paper asks about people’s current experiences of the law and whether the law could better support personal and business transactions.
In addition, the discussion paper seeks advice about the potential internationalisation of Australia’s contract law, with a view to improving the attractiveness of Australia as a business and investment destination.
“As with many debates, I expect there to be both passionate reformers and trenchant defenders of the status quo,” Ms Roxon said.
“Australia’s contract law should support businesses in creating a culture of innovation, embracing technology and looking for new trading opportunities in the Asian century.”
Further information about the consultation process and a copy of the discussion paper can be accessed on the Attorney-General’s Department’s website.
Written submissions will close on Friday 20 July 2012.
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