Australians suffer contract blindness and don’t read before signing, Lawpath reveals

Why you need take your time to read a contract as it’s revealed Aussies take just two minutes and 30 seconds to sign their rights away – and the results can be devastating

  • Average signing time is 2 minutes 30 seconds
  • Australians susceptible to ‘contract blindness’
  • Do you know more? Contact tips@dailymail.com 

Australians have been urged to read their contracts carefully after it was revealed 20 per cent sign in less than a minute with several stung by ridiculous clauses. 

Sydney legal platform Lawpath looked at 7,000 customer contracts in the last six months and found on average a statutory declaration was signed after just 60 seconds and a commercial leasing agreement in 90 seconds. 

Aussies spend an average of 1 minute and 40 seconds analysing a waiver, two minutes and 10 seconds when hiring equipment and two minutes and 30 seconds when examining the terms and conditions of buying a product.

The lack of due diligence has left some in a tight bind after discovering they had agreed to a bizarre list of terms and conditions.

Among the odd clauses included a mechanic refusing to be held responsible for any damage inflicted to a customer’s car and an employer who stopped a staff member from working for a different company in the same industry.

Shocking new data has revealed Australians are spending less than a minute checking legally binding contracts such as a will or workplace agreement (stock image)

Lawpath data showed confidentiality agreements are signed within an average of three minutes while wills and estates take Aussies roughly four minutes to sign. 

The average signing time for any document is two minutes and thirty seconds while one in five people will sign a legally binding form in under 60 seconds. 

Australians are now being urged to read the fine print themselves or employ the help of somebody who understands the law to look over their legal documents. 

Lawpath CEO Dom Woolrych said a ‘concerning’ number of Australians weren’t reviewing legally binding contracts before signing them.

‘We have received feedback indicating that people find legal contracts to be complex and overwhelming, leading them to believe that there is no benefit in reading them,’ he said. 

‘I can sympathise, I’m guilty of not reading the Apple or Facebook terms.’

The failure to inspect a document properly before signing on the dotted line has had serious consequences for some Australians.

One client signed an employment contract with an agency that specified upon leaving they were unable to work in the technology industry for a minimum of six months.

Another employee experienced issues after signing on with an education provider whose contract included the statement: ‘There is no minimum guarantee of any volume or term of Services or Fees’. 

This allowed the company to demand a large volume of services without providing the employee with adequate compensation. 

Up to 54 per cent of Australians sign a legal document within three minutes, making them susceptible to 'contract blindness' a new study has warned (stock image)

Up to 54 per cent of Australians sign a legal document within three minutes, making them susceptible to ‘contract blindness’ a new study has warned (stock image)

A third ran into trouble when trying to break a contract which had an ‘automatic renewal’ clause which had locked them in for another two years. 

The contract had a clause stating that termination could only be provided with a three month written request before the end of the term. 

Other examples include the terms and conditions of a car park which read: ‘You agree the operator shall not in any circumstances whatsoever be liable for any loss of or damage to your vehicle…’

Another cheeky Motor Vehicle Repairer’s Contract read: ‘I agree that you shall not be liable for fire, loss or damage to the vehicle whilst under your control… or the loss of the car’s contents.’

Lawpath has launched a new AI program to help small businesses read the fine print by providing clear and concise explanations of the legal content. 

The technology extracts key dates and information and help businesses navigate seemingly difficult legal contracts with ease. 

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