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Protect your business

Plainly, if you don’t specify terms and conditions you put yourself at risk of uncertainty and misunderstandings – it’s vital to establish the actual arrangement between the two parties involved in any deal. You need to cover yourself, so clients or partners have no opportunity to go back on their word.

What to include

According to Tall, well-drafted terms should act like a manual or recipe book for doing business and having absolute clarity on what should happen in a given situation. “They should set out what the agreed terms are between parties and more importantly what happens if things go wrong or one party wants to leave or is unable to continue,” she explains. “Terms and conditions can also save a lot of money by addressing all issues at the outset. This in turn avoids disputes later on about what might or might not have been agreed.”

The exact elements to include depends on the individual business but you should consider including:

1. A clear definition of what products or services will be provided
2.Setting out the payment terms – when is payment due
3.Any guarantees or warranties offered
4.Timelines for delivery and any queries
5.Specifying what happens if either party doesn’t deliver or pay or wants to end the relationship.
6.The term of the agreement and what notice is required to get out of it.
7.Which law shall govern the contract
8.Arbitration Clause and Seat of Arbitration

 

Top tips for setting out your terms and conditions

• Draw up a list of the key commercial terms that you are offering your customers
• Think of all the scenarios of what could possibly go wrong and then set out what you would do in each case.
• Imagine the most awkward customer possible in doing this exercise
• Put yourself in the shoes of your customers and make sure the language is at their level and user-friendly.
Hiding everything on one page in the smallest font possible will not endear you to your customers
• Don’t forget about the terms of trade – this should be something that you revisit and update, as and when required.
• When in doubt, seek help. Ask for advice from your mentor, professional or an Advocate.

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