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Terms and conditions - why bother?
27 October 2009
Trading During a Recession - Terms and Conditions of Business
Whether you are starting up a new business or have been in business for many years, it is easy to overlook relatively simple things like terms and conditions of business. However, having a clear and comprehensible set of terms and conditions of business has never been more important.
Given the difficult economic circumstances we have all been experiencing in recent months, now is the time to ensure that the terms upon which your company / business trade are legally binding and give your business the protection it requires in difficult trading conditions. There is nothing worse for a business than doing a good job and then not getting paid, so it is vital to ensure your business’ terms and conditions are right before you make a deal. This may seem obvious, but in our experience, it is surprising how many businesses either don’t have terms and conditions or have terms and conditions which prove to be ineffective because they were not incorporated at the time the contract was made.
Why should your business have terms and conditions ?
A well thought through set of terms and conditions of business should, at the very least, cover the most fundamental points of price, payment, delivery and set out provisions of how the contract can be terminated. Clearly setting out this information for your customers can help to prevent some of the problems encountered by many businesses during a recession, such as late payment and costly disputes with customers or suppliers. In the event of a dispute arising, having a good set of terms and conditions which work for your business and are legally enforceable, gives you peace of mind and could save your business money in the long term.
Other benefits of terms and conditions include:
- Clear understanding by setting out what your customer is getting when they use your business and what you will do in return so that there are no surprises
- Improved cash flow by including precise terms of payment so that customers pay promptly and in full
- Peace of mind through knowing that your terms and conditions are legally compliant and enforceable
- Reduce potential liabilities by limiting your business’ liability in certain circumstances
- Risk management for example by including provisions that allow your business to suspend or terminate the contract if factors beyond your business’ control occur which prevent the contract being performed
How can howell jones help your business ?
howell jones’ business and commercial team have many years experience advising businesses and companies of all kinds across a wide range of business sectors. Our experience shows that time spent now preparing watertight terms and conditions for your business is time well spent, and in the long run could save you a great deal of expense. We are able to guide you on ways to improve your terms and conditions to put your company or business in a stronger position and help prevent costly disputes arising with your customers.
We can:
§ Produce a bespoke set of terms and conditions which meet your business’ needs; whether these are for goods or services and made with consumers, other business organisations or both
§ Review your company’s or business’ terms and conditions to ensure that they fully comply with current legislation and are legally enforceable
§ Guide you through the process of how and when a contract is formed so that you can ensure that your business trades on its terms and conditions as opposed to terms imposed by others
§ Advise you on how and in what circumstances you can exclude or limit your company’s or business’ liability when contracting with customers.
§ Ensure that your terms and conditions are in clear English and easy for your customers to understand.
If you are a director of a company or business owner and would like to discuss how we can help you with your business’ terms and conditions or another general company commercial matter, please contact a member of howell jones’ business and commercial team for a non-obligatory discussion.
