Just as you should never buy a house without considering the type of purchaser who might buy it when the time comes to sell, never enter into a contract either on your own behalf , or on behalf of your business, without being 100% clear about how your business can exit from the contract and the implications of that exit. Some practicalities to think about :-

• Is there a clause which allows either or both parties to exit for convenience or without cause ?If so, what length notice is required and what form must that notice take?
• If there is such a clause, consider how such an exit by the other party would affect your business . Would you be left high and dry with nothing to fall back on in terms of service delivery, for example?
• Does the contract provide for compensation to be paid by the party exiting early ?
• Does the contract automatically renew ? For example if you are purchasing a service , is the onus on you to give the service provider notice if you don't wish to renew? If so, must that notice be given within a specified timeframe?
• If you are the exiting party, how does that impact the monies already paid? For example, you may be able to exit early, but you may then lose a disproportionate amount of the money which you have paid upfront.
• If the contract is for a fixed term and/or automatically renews , you must be crystal clear about the start date. This will often be part of the 'definitions' and might be the Effective Date or the Commencement Date or other similar definitions. Either way, be crystal clear and diarise when that date and the associated anniversaries, renewal dates and end of contract dates fall.

And remember, one of the key risks in any contract or associated negotiations is lack of clarity. Never sign a contract which doesn't make sense to you or includes wording that you do not understand. If the contract is not clear at the outset and there is a dispute down the line, you can be 100% sure that the lack of clarity will be not only stressful and contentious , but ultimately, a huge risk for your business.

If you have any questions about contracts or contract negotiations and would like some clear practical explanations, please don't hesitate to call us.

The OAIC, which regulates privacy in Australia, has published comprehensive guidance for business in relation to privacy obligations when ID scanning (the electronic copying of customer ID , such as  passport or driver's licence). The guidance can be found here.

There remains some confusion in the business community about how and whether the Australian Privacy Principles (APPs) apply to small business.

Primarily, the APPs apply to any business which handles personal information and which has a turnover of more than $3M Australian.

However, there is a raft of exceptions which bring businesses turning over less than $3m within the rules. These include:-

• Any business which trades in personal information. This could include a small business selling its customer list to a marketing company or giving its own list in return for another list
• Any health service provider. Health service provider is construed very broadly and includes a provider of any services in relation to physical, emotional and mental health. This exception covers, in addition to traditional health service providers such as private hospitals, medical practitioners and day surgeries, pharmacists, complementary therapists, child care centres, private schools and private tertiary educational institutions.
• Any business operating a residential tenancy database.
• Any business related to a larger corporation which is subject to the Privacy Act.