Why getting Business Terms and Conditions is critical
Businesses enter into arrangements with customers every day. They may be contracts for small or large amounts of money, and may have short or long term implications. Their Business Terms and Conditions are the basis on which these arrangements are entered.
In order to prevent a dispute down the track, and to increase the chances of being paid, business terms and conditions should always be in writing. In addition, Businesses should ensure they have had their Terms and Conditions reviewed before using them with customers. Not all contracts are created equal.
We too often see Business owners who do not understand the terms and conditions of the agreements they are using with their customers. This can lead to a failure to comply with their obligations or an inability to enforce a debt. Many businesses are left unprotected.
Some common problems with terms and conditions are:
- They do not set out what and when payment is to be made;
- They are unclear as to what happens if a product or service is faulty;
- They do not specify how refunds can be obtained;
- They do not have guarantors who guarantee payment;
- They do not allow the business to register on the Personal Property Security Register (see our previous blog on the Personal Property Security Register for more information);
- They do not comply with the Australian Consumer Law and other legislation.
What may seem like unnecessary legal jargon can be essential in protecting you against unnecessary risks, reducing bad debts and helping business transactions progress smoothly.
If you are a customer, it is equally important that you obtain legal advice on any terms and conditions before entering into them to ensure that they will not unfairly prejudice you in your dealings with a business in the future.
If you need help with your terms and conditions please contact our Commercial Business Team.