The Importance of Terms & Conditions
The importance of correctly formed Terms & Conditions that specifies the nature of the relationship between a supplier and their customer can be the difference in getting paid for an order or not.
Many businesses do not have any Terms & Conditions in place and even if they do, they can often be inadequate in terms of offering protection to their business.
In most business transactions, matters will run smoothly but on the occasion where there is an issue or disagreement regarding an order then where do you turn for clarity on the correct legal position. By specifying the responsibilities of both parties and payment terms for any work that is done saves time and hassle further down the line should there be a dispute.
Situations sometimes arise where there is a dispute over payment terms for completed work but if you can provide a document that shows agreement to payment within 30 days, for example, then it helps to resolve such issues. By specifying what the provision is for matters such as delivery times and consequential loss, means your business is protected in the event something goes wrong with an order.
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Not only do Terms & Conditions offer protection to the supplier but they can also give confidence to the client that they know what their expectations are when placing an order with your business.
We would recommend that agreement to your Terms & Conditions is obtained at the start of the trading relationship and also for good measure this could be confirmed each time and order is placed. Ideally you should also be sure about the correct legal entity with which the contract is being formed which is imperative if payment was not received and potential legal action is required. See our article on credit management hints and tips.
Having Terms & Conditions in place should be a fundamental part of any business offering the supply of goods or services and in particular where the supply is on credit.
Straight advice on the need for Terms & Conditions in business
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