Accelerated rent and liquidated damages prohibited
55 Accelerated rent and liquidated damages prohibited
(1) An operator must not engage in conduct that involves entering into, or offering to enter into, a caravan park agreement if a term of the agreement is to the effect that, for a breach by the resident of a term of the agreement (including a term as to rent), the resident is liable to pay:
(a) all or any part of the rent remaining payable under the agreement; or
rent of an increased amount; or
(c) an amount by way of penalty or liquidated damages that is not reasonably proportional to the actual loss that may be suffered as a consequence of the breach.
Fault elements:
The person:
intentionally engages in the conduct; and
(b) is reckless as to whether the conduct would result in a contravention of subsection (1).
Maximum penalty: 20 penalty units.
(2) If a caravan park agreement includes a term of the type mentioned in subsection (1), the term is void.
This Act’s bill:Explanatory statementSecond reading speech
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