Australians urged to read contracts properly after Lawpath revealed shocking statistics
Why you should take the time to read a contract where 20 percent of Aussies sign in less than a MINUTE – as some of the ridiculous terms are revealed
- The average drawing time is 2 minutes and 30 seconds
- Australians prone to ‘contract blindness’
Australians have been urged to read their contracts carefully after it was revealed that 20 per cent sign in less than a minute with several stabbed by ludicrous clauses.
Sydney-based legal platform Lawpath looked at 7,000 client contracts over the past six months and found that on average a legal statement was signed in just 60 seconds and a commercial lease in 90 seconds.
Aussies spend an average of 1 minute and 40 seconds analyzing a waiver, two minutes and 10 seconds renting equipment, and two minutes and 30 seconds researching the terms and conditions of purchasing a product.
The lack of due diligence has left some in trouble after discovering they had agreed to a bizarre list of terms and conditions.
Among the odd clauses were a mechanic who refused to be held responsible for any damage done to a customer’s car and an employer who barred a member of staff from working for another company in the same industry.
Shocking new data has revealed Australians spend less than a minute checking legally binding contracts, such as a will or contract of employment (stock image)
Lawpath data showed that confidentiality agreements are signed in an average of three minutes, while wills and estates take Aussies about four minutes to sign.
The average signing time for any document is two minutes and thirty seconds, with one in five people signing a legally binding form in less than 60 seconds.
Australians are now being urged to read the fine print themselves or enlist the help of someone who understands the law to review their legal documents.
Lawpath CEO Dom Woolrych said a “disturbing” number of Australians were not reviewing legally binding contracts before signing them.
“We’ve received feedback indicating that people find legal contracts complex and overwhelming, leading them to believe there’s no benefit to reading them,” he said.
“I can sympathize, I’m guilty of not reading the terms of Apple or Facebook.”
Failure to properly inspect a document before signing it on the dotted line has had serious consequences for some Australians.
One client signed an employment contract with an employment agency that, upon departure, stated that it would not be able to work in the technology industry for at least six months.
Another employee encountered problems after signing up with an education provider whose contract contained the following statement: “There is no minimum guarantee for any volume or term of Services or Fees.”
This allowed the company to demand a large number of services without providing the employee with adequate compensation.
Up to 54 per cent of Australians sign a legal document within three minutes, leaving them susceptible to ‘contract blindness’, a new study warns (stock image)
A third ran into trouble when he tried to break a contract with an ‘auto-renewal’ clause that had locked them in for a further two years.
The contract contained a clause that cancellation was only possible with a written request three months before the end of the term.
Other examples include a car park’s terms and conditions which read: ‘You agree that under no circumstances will the operator be liable for loss of or damage to your vehicle…’
Another cheeky motor vehicle repair contract read: “I agree that you shall not be liable for any fire, loss or damage to the vehicle while under your control… or the loss of the contents of the vehicle.”
Lawpath has launched a new AI program to help small businesses read the fine print by providing clear and concise explanations of legal content.
The technology extracts important data and information and helps companies navigate seemingly difficult legal contracts with ease.