For most new businesses it is essential to commence trading at the earliest opportunity. In the euphoria generated by seeing a business idea turn itself into a stream of customers or clients, it is easy to lose sight of the importance of putting commercial safeguards in place before you start trading. Some business relationships inevitably fray over time and the prospect of litigation could prove an expensive reality check, especially in the current economic climate.
The simplest way for any business (whether a limited company, partnership or sole trader) to protect its trading position for goods or services is to rely upon its own bespoke Terms and Conditions of business.
As a non-exhaustive guide, these usually include spelling out the mechanics of payment including interest for non-payment, timing and place of delivery and the liability of both parties throughout the transaction.
It is essential for business owners supplying goods or services to understand the rules of “reasonableness” as prescribed by the Unfair Contracts Terms Act so that their terms relating to pricing policy or “cooling-off” policy can actually be enforced. By relying on a professionally drafted set of terms and conditions they can do so.
Terms and Conditions of business are not only essential for new businesses but also for existing companies or traders who may currently rely on order forms and invoices, perhaps “lifted “ from their competitors, to determine their terms of commerce.
As I find with most of my business clients, the process of drafting terms and conditions is a two-way process so that each set of terms and conditions are unique to each particular business. Once in place, the terms can be used repeatedly as the contract for every commercial transaction.
By Grant McCall.
The Commercial Team at AMD Solicitors offer advice and information on legal issues for businesses (including a free first half hour consultation). E-mail firstname.lastname@example.org or telephone 0117 9621205.