The Right Terms and Conditions are Essential
Every business, whether a large multinational or a tiny company, should have a set of standard business terms or conditions. This sets out the contract terms between the business and its customers and is designed to both limit liabilities and protect your rights.
Often, a business supplies services and goods based on verbal or informal agreements. This is very risky – especially large sums are involved. If all terms are clearly set down in writing however, there is far less chance of a dispute arising.
What should my terms and conditions include?
Standard terms and conditions usually include:
· Delivery arrangements
· Terms of payment
· Details of what services or goods will be provided
· Credit periods and credit terms
· Data protection clauses
· Details of interest charged on any late payments
Doing without Written Terms and Conditions – the Risks
Starting a new business is often very exciting and making sure you have your own terms and conditions drafted can be overlooked. But doing so can have a disastrous effect on your business.
What do you risk? Fundamentally, if there is no clear agreement with you and any supplier or customer then is huge scope for misunderstanding. You need to cover your back with the right terms and conditions .
What’s more, the doing without T and Cs can create havoc with two simple but critical financial issues – cash flow problems through late payments and wasting money on the necessary debt collection.
Get your terms and conditions right and make sure there’s no place for slow payments from your customers.
DIY terms and conditions
It’s amazing how many otherwise well-run businesses try to cut corners by simply copying or, worse still, cobbling together their terms and conditions from documents used by other businesses, or cribbed from the Internet.
It’s a totally unnecessary risk. Properly drafted terms and conditions is the bedrock of any successful business.
Don’t take chances by relying on DIY terms and conditions. Get them drafted, or reviewed, by a specialist commercial law solicitor.
Should we review our existing terms and conditions?
If you drafted your T and Cs yourself, then the answer is definitely yes – get them reviewed by a specialist solicitor.
However even if your original terms and conditions were drafted by a solicitor, you may find that your business, or the market your trading in, has changed and that the terms and conditions that were perfectly suitable when they were drafted, are no longer adequate. If that’s the case – then make sure you get your terms and conditions reviewed as soon as possible.
At Bonallack and Bishop, we are happy to help you draw up terms and conditions for your business to protect your interests.