Terms and Conditions for Business
Terms and Conditions are the terms of the contract between you and your customers.
The purpose of having written Terms and Conditions is to protect your business and clarify your business transaction.
This is done by including appropriate clauses that protect your rights,limit your liabilities and describe with sufficient clarity what you are supplying.
Many businesses supply goods and services on the basis of verbal arrangements. This can lead to misunderstandings, disputes and litigation much more frequently than when there are clear written business agreements.
In case you were wondering there are a few terminology variations in use for Terms and Conditions, including “Terms”, “Terms of Sale” “Sale Contract” and “Business Terms”. In fact the title of the document is not important, what is in it is important.
Another variation is when the customer successfully varies the terms. Then is referred to as a “Sales Agreement” or a “Document of Sale”. This is not normally possible with internet transactions which are typically on a take it or leave it basis. Without ticking the agreement box there can be no transaction.
Terms and Conditions: typical provisions
Definitions
The product or service needs to be clearly defined so that both parties understand what exactly is being sold.
Price
This may be part of the Terms and Conditions or as a reference to another document e.g. the current published price list. There might be provisions for discounts for larger purchases.
Payment
How the customer should pay is very important. It may include deposit, part payment or full payment which will depend on the nature of the sale and the industry. Late payment and penalty clauses might be appropriate too.
Cancellation provisions
Depending on the nature of transaction cancellation provisions might be desirable or essential e.g. booking hotels where late cancellation can incur a hefty cancellation fee but a timely one incurs no charge.
Limitation of Liability
There is normally some element of limiting liability for failures in provision or faulty goods. Unfair Contract Terms Act is important and needs to be considered when the contract is with consumers.
Disputes
Consideration may be warranted for dispute resolution, e.g. mediation, and which jurisdiction the dispute will be tried which is particularly relevant if cross border/international transactions are envisaged.
Indemnity
In some circumstances the customer may be liable to the seller for losses and expenses incurred by them. Full terms and conditions will usually contain an indemnity provision.
Data Protection
You should note your liabilities under the Data Protection Act 1998 in relation to the information which they will provide you.
There is no doubt that having a good set of Terms and Conditions will benefit both you and your business by creating the right impression with customers, minimising misunderstandings and so will give you peace of mind. They might even save you time and your business money in the long run.
Check out other typoes of business agreements at http://lawscape.co.uk/business.
