55Accelerated rent and liquidated damages prohibited

55 Accelerated rent and liquidated damages prohibited (1) An operator must not engage in conduct that involves entering into, or offering to enter into, a caravan park agreement if a term of the agreement is to the effect that, for a breach by the resident of a term of the agreement (including a term as to rent), the resident is liable to pay: (a) all or any part of the rent remaining payable under the (b) rent of an increased amount; or

Caravan Parks Act 2012 36 (c) an amount by way of penalty or liquidated damages that is not reasonably proportional to the actual loss that may be suffered as a consequence of the breach. (2) If a caravan park agreement includes a term of the type mentioned in subsection (1), the term is void.