What must happen on termination?
38 What must happen on termination?
On the termination of a contract under section 37 before the death of the person in respect of whom a funeral service was to be supplied under the contract—
the funeral provider and any associate of a funeral provider must transfer or assign to the other party to the contract or that party's legal personal representative any interest the funeral provider or associate has in the consideration paid or given in respect of the contract by or on behalf of that party; and
if any money paid to the funeral provider in respect of the contract by or on behalf of any other party to the contract has not been invested or paid out in accordance with section 29 or 30(1), the funeral provider must pay the amount of that money to that other party to the contract or that party's legal personal representative.
- 360 penalty units.
On the termination of a contract under section 37 on or after the death of the person in respect of whom a funeral service was to be supplied under the contract—
the funeral provider and any associate of a funeral provider must transfer or assign to the legal personal representative of the person in respect of whom a funeral service was to be supplied under the contract any interest the funeral provider or associate has in the consideration paid or given in respect of the contract; and
if any money paid to the funeral provider in respect of the contract by or on behalf of any other party to the contract has not been invested or paid out in accordance with section 29 or 30(1), the funeral provider is discharged from the trust created under section 29(3) and must pay the amount of that money to the legal personal representative of the person in respect of whom the funeral service was to be supplied under the contract.
- 360 penalty units.
Subsections (1) and (2) do not apply to an administration fee or brokerage fee paid in respect of a pre-paid funeral contract.
This Act’s bill:Explanatory memorandumSecond reading speech
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