Accurately outlined written and incorporated terms and conditions of trade allow businesses the safety and knowledge that all parties understand all the terms under which they conduct business. Typical terms and conditions of trade will, amid other things, plainly set out the following in writing:
- The price
- When and how payment is required
- When a product/service is to be performed or delivered
- What happens when payment is not received
- How a business might limit their liability under a specific contract
Numerous businesses who do have terms and conditions of trade frequently fail to correctly incorporate them into their contracts with their clients. The result of failing to correctly incorporate the terms and conditions into contracts is that those terms and conditions may not have any legal force on the business’ contracts.
Having accurately prepared and incorporated terms and conditions will protect businesses from accumulating substantial expenses in the future as it is much costlier and more time consuming to take legal action against customers who fail to pay or deal with additional disputes through the courts, than it is to have accurate terms and conditions that have been written and incorporated from the very beginning.
Do all businesses need terms and conditions?
Every business, whether a large corporation or a small family-run establishment, should have a set of standard business terms or conditions. This lays out the contract terms between the business and its customers and is designed to both limit liabilities and protect your rights.
Should a business contract have to be in writing?
Sometimes, inexperienced businesses may supply their goods or services under a verbal agreement. Even though verbal contracts are binding, they may be hard to prove, and therefore can be seen as risky. Having proper business terms and conditions can limit the chances of a dispute arising.
Why should a business review their existing Terms and Conditions
Here are some aspects for T&Cs that you and your solicitor may want to consider:
- Making sure that it is your terms and conditions that administer the performance of the contract – not those of your client or customer.
- Clearly outline when payment for goods or services is expected. This may need updating if you have been running for business for a while. Your current payment terms may be too lenient, and it is not uncommon for businesses to state payment is due 30 days after the invoice is sent. Reducing this to 14 or 7 days might be a better for cash flow.
- You might want to charge interest accrued on unpaid invoices.
- When you have only verbally agreed your services or goods a written contact is needed to make it binding. Verbal agreements cannot be made enforceable in certain situations so written terms and conditions are vital.
- Your terms and conditions must be transparent – easy to understand and act on.
- Making sure that you have relevant terms and conditions for your business is a critical element in success.
Contact JMR Solicitors for advice on Business Terms and Conditions
At JMR Solicitors we can guide your business on both the content and drafting of your business’ terms and conditions. Our commercial law specialists have the proficiency to advise you on all legal matters affecting terms and conditions and the creation of business contracts. We can help you identify the important commercial perils that affect your business and will adapt the terms and conditions crucial to protect it.
Contact us today for your business terms and conditions on 0161 491 3933 or email firstname.lastname@example.org