Report No. 199
New Zealand: (substantive unfairness)
New Zealand Law Commission, 1990 in the Report on 'unfair' contracts (Nu11) proposed a definition as follows:
"(1) A term of a contract is also unfair if, in the context of the contract as a whole, it is oppressive;
(2) A term of a contract is oppressive if it:
(a) imposes a burdensome obligation or liability which is not reasonably necessary to protect the interests of the other party; and
(b) is contrary to commonly accepted standards of fair dealing.
(3) A transaction that consists of two or more contracts is to be treated as a single contract if it is in substance and effect a single transaction."
The Commission gave a number of examples of 'substantive' unfairness.
It also stated that a contract is not unfair unless, in the context of the contract as a whole,
(a) it results in a substantially unequal exchange of values; or
(b) the benefits received by a disadvantaged party are manifestly inappropriate to his or her circumstances; or
(c) the disadvantaged party was in a fiduciary relationship with the other party.
The above are the 'substantive' unfair terms in contract or guidelines relating thereto, which are found in other countries.