Why Your Business Needs Terms And Conditions
Having professionally drafted terms and conditions is an essential element of a well-run business and provides one of the foundations on which your organisation will reach its growth targets. In this article, we set out what terms and conditions are and what they need to contain to protect your best interests.
What are terms and conditions?
Terms and conditions set out in writing the terms on which your organisation trades and regulate how you conduct your business. They can either be bespoke to a particular customer or consist of a non-negotiable set of terms presented to every customer on a ‘take it or leave it’ basis.
What should my business’s terms and conditions contain?
Most standard terms and conditions contain information concerning:
- The type of goods and services being sold.
- The price of your goods and services. If you are selling services on an ongoing basis, details of annual price increases should also be included.
- The payment methods and terms you accept.
- Penalties for late payments.
- Delivery of goods and provisions regarding carriage risks and insurance.
- Situations where your liability is limited. Remember, you cannot contract out of statutory liabilities, for example, those contained in the Consumer Protection Act 2015.
- Cancellation and renewal policies.
- Data protection policies and procedures.
- Consumer indemnities (circumstances where the client must pay you for any losses or expenses incurred).
- Dispute resolution.
- Intellectual property rights.
Depending on the type of business you run, your terms and conditions may sit alongside other commercial contracts such as a software agreement.
How can I ensure customers see my terms and conditions?
Putting your terms and conditions on your website in a position that can be easily seen is one way to alert customers to the document. It is also a good idea to provide links to your terms and conditions in your organisation’s email footer and any electronic sales and marketing material. When you onboard a new customer, ensure they receive your terms and conditions and sign and return a copy.
Wrapping up
Although you can download online terms and condition templates, it is always best practice to have all your commercial documents drafted by an experienced solicitor. They will ensure that particular nuances related to your market sector and business are provided for. The investment you make in having professionally created terms and conditions is minuscule when compared with the cost of resolving a commercial dispute.
If you have any questions regarding anything covered in this article, please call us on 02476 231000 or email enquiries@askewslegal.co.
