Commentary on Sections Part 2: Registration and Regulation of Tertiary Education Providers Fee limit statements Section 49: Validity of contracts
150.This section applies where a contract between a provider and a qualifying person in respect of that person undertaking a qualifying course provides for the payment of fees by the person which exceed the applicable fee limit.
151.“Qualifying person” and “qualifying course” have the meaning given to those terms in section 32.
152.Subsection (2) provides that such a contract is to be treated as providing for the payment of fees which are equivalent to the applicable fee limit. So where a student refuses to pay any excess fees specified in a contract the provider will not be able to recover the excess fees. But the contract will remain otherwise enforceable in terms of the provider’s duty to provide education to the student, despite the contract providing for the payment of fees which exceed the applicable fee limit (subsection (3)).