Terms and conditions are the terms of the contract between you and your customers. They are designed to protect your rights, limit your liabilities and provide you with security when selling your goods or services.
Many businesses supply goods and services without any formal terms in place. Disputes often arise on this basis that could have been avoided if clearly written terms were in place.
With this is mind, it is therefore essential that your terms and conditions are right. If they do not cover you where required, it can be difficult to pursue and prevent bad debt. Consulting a solicitor when drafting these terms may save you a lot of time, effort and money in the long run.
As a general rule, your terms should look to cover areas such as price, delivery, payment terms (30 days is the default period), right to charge interest on late payment, collection costs and quality of goods/services. We have covered late payment and collection costs later on in this guide.
- In order to make your terms binding, you must make your customers aware of your terms and conditions before providing them with your goods or services. Wherever possible, it will always help to have their acceptance of the same in writing. This can normally resolve any future disputes at this stage as the customer is clear on what is required. It is also advised that you include your terms and conditions on each invoice that you raise limiting any comeback.
It is also worth noting that the law allows you to challenge customers who seek to impose terms on you that remove your right to claim late payment interest or collection costs.
