Incorporation of unusual or unreasonable terms into contracts: the red hand rule and signed documents

This article analyses case law relating to the red hand rule. In particular, there is an examination of the decision of the High Court in Toll v Alphapharm Pty Ltd. The judgment of the court signals a clear answer as to whether the red hand rule applies to signed documents. In this context, the authors also consider whether section 52 of the Trade Practices Act, and statutory provisions relating to unconscionability, are available to protect consumers against unusual or unreasonable clauses incorporated into signed contracts. Two recent cases involving share trader David Tweed are also analysed.