Can I Get Out of a Contract I Signed? Cooling-Off, Misleading Conduct, Unfair Terms and Breach (Australia, 2026)

Checked on 9 November 2026 against the legislation and official pages listed under Sources. This is general information, not legal advice.

Ways out of a contract at a glance

1. A cooling-off period

There is no general right to change your mind. The ACCC says that when you buy from a store or website “there is no automatic right to a cooling-off period”. Cooling-off periods exist for some contracts: home purchases in most states, door-to-door and phone sales (10 business days), some car purchases from dealers, gym memberships in some states, new franchises and retirement villages. Most last only a few business days. Our guide to cooling-off periods by contract type has the details.

If a salesperson came to your door or phoned you uninvited and the price is over $100, you can cancel within 10 business days by telling the supplier, orally or in writing, and the period stretches to 3 or 6 months if the seller broke the sales rules (ACL ss 69, 82). A term that tries to take this right away is void (s 89).

2. A termination clause in the contract

Many contracts say how either side can end them. The Queensland Small Business Commissioner suggests looking for:

• termination for convenience, which lets a party exit without a reason;
• termination for breach, if the other party has failed to meet its obligations;
• notice periods, where you can end it by giving advance written notice.

Follow the clause exactly, and check what it costs. If only the business can end the contract, or only you pay a fee for ending it, that term may be unfair (ACL s 25(b) and (c)), see section 6.

3. The other side breached the contract

If the other party has not kept its side, for example by not delivering goods or missing deadlines, you may be entitled to end the contract for breach. The Queensland Small Business Commissioner says that before you do, you should confirm that a material breach has occurred, check whether you need to give a notice to remedy the breach, and follow any procedure in the contract. It warns: “Wrongly terminating a contract can itself be a breach”.

Faulty goods and poor services: consumer guarantees

If you bought as a consumer, the Australian Consumer Law gives you guarantees that cannot be signed away: a term that tries to exclude them is void (s 64).

• Goods with a major failure: you can reject them and choose a refund or a replacement (ss 259, 263). If you reject goods and choose a refund, you can also end connected service contracts (s 265).
• Services with a major failure, or a minor failure the business will not fix: you can terminate the contract (s 267) and get a refund for services you have not already used (s 269).

A major failure includes one so serious that a reasonable consumer would not have bought the goods or services had they known about it, or one that makes them unsafe (ss 260, 268).

4. You were misled into signing

“A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive” (ACL s 18). False claims about price, quality, or your rights and remedies are also banned (s 29). If you signed because of something untrue the business said or showed you, you may have a way out.

The remedy comes from a court or tribunal. It can make orders including:

• declaring all or part of the contract void (s 243(a));
• varying the contract (s 243(b));
• refusing to enforce any of its provisions (s 243(c));
• ordering the business to refund money or return property (s 243(d)).

You can also claim compensation for loss caused by the conduct (s 236), within 6 years. Keep the ads, messages and quotes. The Queensland Small Business Commissioner notes that misleading conduct “is usually established through a court trial or a tribunal hearing”, so a strong written complaint to the business is usually the first step.

5. Pressure, unfair tactics or unconscionable conduct

A business must not engage in unconscionable conduct in connection with supplying goods or services (ACL s 21), or conduct that is unconscionable under the general law (s 20). In deciding whether conduct was unconscionable, a court can consider matters including (s 22):

• the relative bargaining strength of each side;
• whether you were able to understand the documents;
• whether any undue influence or pressure was put on you, or unfair tactics were used;
• conditions imposed on you that were not reasonably necessary to protect the business.

The same orders under s 243 are available, including declaring the contract void and ordering a refund. The Queensland Small Business Commissioner also lists undue influence and duress as things that can make a contract unenforceable, and says that if one is established “the affected party may be able to rescind (cancel) the contract or seek damages”.

6. An unfair contract term

A term of a consumer contract or small business contract is void if it is unfair and the contract is a standard form contract (ACL s 23). A small business contract is one where a party employs fewer than 100 people or had turnover under $10 million in its last income year. A term is unfair if it causes a significant imbalance, is not reasonably necessary to protect the business, and would cause detriment (s 24). Examples include terms that let only one side end the contract, penalise only one side for ending it, or let one side change the price without you being able to cancel (s 25).

Two limits matter. A void term does not usually end the whole contract: it continues if it can operate without that term (s 23(2)). And the upfront price and main subject matter cannot be challenged as unfair (s 26). But if an exit fee or lock-in term is void, leaving may cost less.

7. Loans and finance

Credit contracts have their own rules under the National Credit Code:

• you can pay out a loan at any time, paying any early termination charge the contract provides for (s 82);
• if you cannot keep up repayments, you can give a hardship notice, orally or in writing (s 72);
• a court can reopen a credit contract that was unjust when it was made (s 76);
• if the seller arranged the finance and the sale is rescinded or discharged, you may be able to end the tied loan too (s 135).

See the car finance contract guide for more.

8. Negotiate a mutual exit

Even without an exit clause, both sides can agree to end a contract early. The Queensland Small Business Commissioner calls this a mutual termination and says it usually needs some give from both sides, such as a staged exit, compensation for the other side’s costs, or a replacement supplier. It adds: “A mutual exit should always be documented in writing”. If talks stall, mediation can help; in Queensland, free mediation for business disputes may be available through the Dispute Resolution Branch.

Frustration

Rarely, a contract ends because something outside both parties’ control makes it impossible to perform. This is called frustration. The Commissioner says it is “difficult to establish”, and points to force majeure or termination clauses as clearer options.

What happens if I just walk away?

If none of the routes above applies, walking away is a breach. The other side may sue you for damages or costs, keep your deposit if the contract allows, or pursue the debt, which can affect your credit rating. Do not stop paying until you know where you stand.

What to do now

1. Get a full copy of the contract, including the terms, schedules and anything signed on the day.
2. Find the deadlines and exit terms: cooling-off, notice periods, termination and break-fee clauses.
3. Collect evidence of what you were told and what went wrong.
4. Write to the other side, say which right you rely on, and keep a copy.
5. If they will not agree, consider your state fair trading office, a tribunal, or legal advice.

What our review checks

Upload the contract and get a plain-English report, usually about 5 minutes after you pay. It includes a “getting out” section that:

• shows any cooling-off period in the contract and how to use it
• explains how the contract can be ended, by whom, and on what notice
• says what to do if you have already signed
• sets out break fees, cancellation charges and other costs of leaving
• flags terms that may be one-sided, strict or costly
• lists key dates and gives you questions to ask and an email you can send

It explains what the contract says. It is not legal advice and does not decide whether you can end the contract. Claim Done is not a law firm.

Get my contract reviewed – $49

Questions people ask

Can I cancel a contract I just signed?

Only if a cooling-off period applies and has not ended, the contract lets you, or the other side agrees. There is no general right to change your mind. Cooling-off periods apply to some contracts, such as home purchases in most states and door-to-door or phone sales.

Is a contract binding once it is signed?

Generally, yes. A contract can be made in writing or verbally, and once it is made both sides are expected to follow it. You can get out only through the contract’s own terms, a cooling-off right, a legal remedy such as for misleading conduct, or agreement.

Can I get out of a contract if I was misled?

Possibly. Misleading or deceptive conduct is banned by ACL s 18, and a court or tribunal can declare the contract void, vary it, refuse to enforce it or order a refund (s 243). You can also claim compensation for your loss (s 236) within 6 years.

Can I get out of a contract I was pressured into signing?

Possibly. Unconscionable conduct is banned (ACL ss 20-21), and a court can consider undue influence, pressure, unfair tactics and whether you could understand the documents (s 22). The orders available include declaring the contract void and a refund.

Can I end a contract if the other party breaches it?

If the breach is serious, you may be able to terminate. Check the contract for a notice to remedy step and follow its procedure. Wrongly terminating can itself be a breach, so be sure of your ground first.

Does an unfair term let me out of the whole contract?

Usually not. An unfair term in a standard form consumer or small business contract is void, but the rest of the contract continues if it can operate without that term (ACL s 23). A void exit fee or lock-in term may still make leaving cheaper.

Can I get a refund if the product is faulty?

If there is a major failure, you can reject the goods and choose a refund or replacement (ACL ss 259, 263). For services with a major failure, you can cancel and get a refund for services not yet used (ss 267, 269). A term excluding these rights is void (s 64).

What happens if I just stop paying?

If no legal way out applies, it is a breach. The other side may sue for damages, keep your deposit if the contract allows, or chase the debt, which can affect your credit rating. Get advice or negotiate before you stop paying.

Can I get out of a loan contract?

You can pay out a loan at any time, paying interest and fees to that date and any early termination charge in the contract (NCC s 82). If you are struggling, you can give the lender a hardship notice (s 72). A loan the seller arranged may be ended if the sale is rescinded (s 135).

Is a verbal contract binding?

It can be. The Queensland Small Business Commissioner notes that a contract can be made either in writing or verbally. Proving its terms is harder, so write down what was agreed and keep messages and receipts.

Is the contract review legal advice?

No. It is a plain-English report that explains what your contract says, including how it can be ended. It is not legal advice. Claim Done is not a law firm.

Related guides

• Cooling-off periods by contract type
• Unfair contract terms for small business
• Gym won’t let you cancel?
• How much does a lawyer charge to review a contract?

Claim Done is not a law firm and does not give legal advice; this page is general information about Australian law as at 9 November 2026. If it is disputed, only a court or tribunal can decide whether you can end a contract.

Sources (checked 9 November 2026)

• Competition and Consumer Act 2010 (Cth), Schedule 2 (Australian Consumer Law), Compilation No. 167 (ss 18, 20-27, 29, 64, 69, 82, 89, 236, 237, 243, 259-269)
• National Consumer Credit Protection Act 2009 (Cth), Schedule 1 (National Credit Code) (ss 72, 76, 82, 135)
• ACCC: contracts; telemarketing and door-to-door sales
• Queensland Small Business Commissioner: signed a contract but want to exit? (last updated 2 July 2026)