Are your business terms and conditions sufficient?
Most businesses are being severely disrupted by the coronavirus pandemic. Once immediate concerns are resolved, many businesses may find they have more time on their hands to focus inwards on the internal policies and the contractual terms on which they operate. This time could be used as an opportunity to review and update your business’ terms and conditions.
Why are terms and conditions important?
The importance of sufficient terms and conditions goes beyond the standardisation of the terms used in the business. They provide legal certainty and reduce risk by clearly setting out in black and white the rights and obligations of each party. This means that there is less scope for legal disputes, which could be costly and harmful to a business’ reputation. In turn, this gives both parties confidence that expectations will be met and increases the likelihood of customers returning to use your goods or services.
In addition, the current crisis may have identified previously unforeseen gaps in your current terms and conditions that should now be reviewed to protect your business and provide certainty in the future.
What should a comprehensive set of terms and conditions include?
Of course, each set of terms and conditions will depend on the type of business which they relate to and the type of goods or services being provided. There are, however, some provisions which are common to all sets of terms. These include (but are not limited to):
- clear payment terms and provisions for a failure to pay;
- provisions which clearly set out the type and extent of goods or services to be provided;
- consequences of a breach of the agreement as a result of either party failing to carry out their obligations;
- the term of the agreement and provisions for ending the contract; and
- a choice of law clause.
It is important to note that the terms and conditions should be properly incorporated into all contracts in order for them to be effective.
How can Clarke Willmott help?
Our Commercial team has extensive experience in drafting terms and conditions that are tailored to the specific needs of your business.
Please contact us with any enquiries or if you would like us to provide a quote for drafting terms and conditions for you.