Where you are starting a new business venture or changing your terms and conditions, there is always a never ending list of tasks to complete. Many businesses focus on getting their products / services prepared, finding customers and marketing themselves. For many entrepreneurs addressing Terms and Conditions remains at the bottom of the list but getting them right is crucial to ensure a healthy cashflow.
Neglecting Terms and Conditions for your business, could potentially affect your cashflow and may result in you spending money and wasting time on debt collection (please see our debt recovery blog for further information following the changes brought in on the 1st October 2017) or litigation. In addition, Terms and Conditions are not set in stone. They should be amended regularly to reflect your business if key terms are changed.
Correctly drafted and incorporated Terms and Conditions should act like a manual or recipe book for business and should have absolute clarity on every situation. It is imperative that they are well drafted.
What to Include in Terms and Conditions
- Parties involved
- A clear definition of any product or service provided.
- Price and specification
- Payment terms including when payment is due and interest payable on unpaid sums.
- Any guarantee or warranties offered.
- Delivery process.
- Identifying the process if either party does not deliver, pay or wants to break the contract.
- Liability for defective services, goods plus what amounts to breach of contract.
- Confidentiality clauses
- Notice Periods
- Jurisdiction and governing Law.
Remember Terms and Conditions are specific to your business and ‘one size doesn’t fit all’. Having the correct Terms and Conditions will save businesses considerable expense in the long run, as it is more expensive and time consuming to take legal action against customers who do not pay or fund expensive litigation than it is to have the correct Terms and Conditions prepared at the outset of your business.
If you require any further information about Terms and Conditions, please contact the team at Watson Legal either by calling 01279 466910 to book your free 30 minute consultation or email email@example.com.