When it comes to your business’ terms and conditions of trade, one size does not fit all.
Put in place clear and relevant boundaries for your business from the outset and you minimise the risk of a dispute. Failing to focus on your trading terms on the other hand, could impact your business’ cash flow and cost you unnecessary time and money collecting debts and resolving disputes.
Resist the temptation to ‘borrow’ from another businesses trading terms or downloading generic terms from the internet. You cannot assume another business has the same needs as yours, even if in the same industry. Your terms and conditions must be specific to your business to be effective.
Create clarity as to what should happen in any situation. This will avoid customers going back on their word. At a minimum consider:
- Defining the product or service you supply.
- Specifying your payment terms. When is payment due? What are the consequences of non-payment? Will you charge interest on late payments?
- What is the timeline for delivery?
- Do you offer a warranty? When does the warranty apply?
- What are the consequences of failure to deliver on time or non-delivery?
- How can the relationship come to an end? Is a notice period applicable?
- Does one or other party require insurance?
- What law applies to the contract?
Time spent upfront documenting your T&C’s will reduce uncertainty, avoid misunderstandings and minimise the opportunity for a protracted dispute. Written terms of trade also serve as evidence should you need to engage in a legal recovery process. Get it right and there is no excuse for slow or non-payment!
Need your T&C’s drafted or reviewed? Please call Tracey for a confidential discussion.
Partnering with you. Protecting your rights, business and your brand.
This publication is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Readers should take legal advice before applying the information contained in this update to specific issues or transactions. For more information or specific advice on your circumstances please contact Tracey Robinson today.