| Contract basics | Contract basics apply; Fair Work and ACCC guides explain contractor and standard-form rules. | Most contracts needn't be written; Scotland has no consideration requirement. Written is easier to prove. | State-based. Common law covers services; UCC Article 2 covers goods. Written, signed agreements are common. | No single EU contract form; each member state's civil or common law sets contract rules. |
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| Must it be written? | Many deals can be verbal or by text; writing helps prove terms. | Generally not for service agreements; land, wills and deeds have formalities. Check each nation's rules. | Varies by state; statute of frauds, including the one-year rule, can require writing for some contracts. | National question; EU rules mostly add consumer information and withdrawal duties, not a general writing rule. |
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| E-signatures | Commonwealth and state Electronic Transactions Acts allow e-signatures in many cases; check exceptions. | Electronic Communications Act 2000 s.7; Law Commission 2019 says e-signatures can be valid. | Federal ESIGN Act plus state UETA generally recognise electronic signatures; some document types excluded. | eIDAS: simple, advanced, qualified; qualified equals handwritten across the EU. eIDAS 2 adds digital identity wallets. |
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| Unfair terms | Illegal in standard form small business contracts since 9 Nov 2023; ACCC enforces, penalties apply. | Consumer Rights Act 2015 Part 2 (B2C fairness); Unfair Contract Terms Act 1977 (B2B reasonableness). | No general B2B law; courts apply unconscionability; state UDAP and FTC Act mainly protect consumers. | Directive 93/13 covers consumers only; business-to-business unfair terms are left to national law. |
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| Contractor or employee | Whole-relationship test since 26 Aug 2024; FWC reviews contractor unfair terms below high-income threshold. | Employee, worker or self-employed by real working arrangement; CEST tool and IR35 off-payroll rules for tax. | IRS common-law test, DOL rule and state tests (e.g. California ABC) differ; check each. | National tests apply; Platform Work Directive 2024/2831 presumes employment on platforms, transposition due 2 December 2026. |
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| Late payment | Contract terms govern interest; ASBFEO, state commissioners and tribunals help recover debts. | B2B: 8% over base rate plus £40/£70/£100 fixed charge, per GOV.UK. | No general federal rule; NYC and New York State freelancer laws set payment timing; contract terms govern. | Directive 2011/7: B2B interest, 60-day cap with exceptions, flat EUR 40 compensation; details national. |
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| Small claims | State tribunals or magistrates courts: NCAT, VCAT, QCAT, ACAT, NT and WA courts. | E&W county court online, mediation free to £10,000; Scotland and NI simple/small claims to £5,000. | Limits set by state (e.g. CA $12,500, TX $20,000, NYC $10,000); check your state's court. | European Small Claims Procedure for cross-border claims up to EUR 5,000; also European Order for Payment. |
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| Time limits to claim | Generally 6 years for contract in most states; NT generally 3; check state Act. | England & Wales 6 years (Limitation Act 1980 s.5); Scotland 5 years prescription; NI separate. | Set by state and claim type; written contracts often get longer periods than oral ones. | Not harmonised for cleaning contracts; each member state sets its own time limits. |
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| Privacy | Privacy Act small business exemption at $3m turnover, with exceptions; OAIC explains. | UK GDPR and Data Protection Act 2018 apply; ICO advice hub for small businesses and sole traders. | No general federal law; FTC oversight plus state laws such as California's CCPA. | GDPR: controller and processor roles; guest data needs care; national authorities and EDPB give guidance. |
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