Business Owners – Terms & Conditions are a must!

If you are selling a product or offering a service, written terms and conditions of business are absolutely essential. Terms and conditions establish the business relationship between you and your customers.  They will protect your business and provide clarity in the event of any misunderstanding.

Having terms and conditions that are clear and unambiguous will reflect in writing the actual agreement that you are making with your customers.  The terms and conditions will set out the roles, responsibilities and payment terms of your agreement.  This, in turn, will assist your cashflow as customers are fully aware as to when and how much you require them to pay for services or goods provided to date.  They should also provide detail as to what happens when things go wrong and one party is unable to fulfil their side of the bargain.

The devil is in the detail and your business may have particular requirements that are not at all relevant to the next business.  Your terms and conditions should be tailored to suit your individual business needs.  However, certain terms are common to all businesses and should be considered for inclusion, namely:-

• Defining the exact product or service being provided.
• Detailing any guarantees or warranties that are being offered.
• Establishing payment terms – is a deposit required? When is the final payment due?  Are credit terms being offered?  Are there penalties for late payment?
• Setting timelines for the provision of services or the delivery of goods.
• Jurisdiction clause – this determines which country’s laws will govern the contract.
• Complaints and dispute resolution processes.
• Notice periods for termination of the contract.

It is helpful when drawing up the requirements for your terms and conditions of business to prepare a list of the core terms of business you want to offer your customers.  Then imagine dealing with a most difficult customer and consider all the ways in which things could go wrong.  With those difficult scenarios in mind structure your terms and conditions so you are clear as to how you would deal with them.

At Douglas Law Solicitors we provide commercial law services to SMEs.  We will advise and assist you in relation to the preparation and drafting of terms and conditions of business to suit the particular requirements of your business.

For more information please contact us on 021 489 7256 or by email at info@douglaslawsolicitors.ie