In contracts standard sales terms and conditions are often neglected until a dispute comes up and they are found to be inadequate to cover the business owner’s interests. In our experience some of the common clauses that a business selling products or services might overlook in their “terms and conditions” are:-

Return of Goods Policy

If your business supplies goods or materials then a “return of goods policy” should be included in your terms and conditions. It should clearly specify the days which the goods can be returned and the condition they must be in. If the goods are at all perishable in nature then such a clause becomes even more critical to protect your interests.

Liquidated Damages Clause

(Sometimes incorrectly called a “Penalty Interest Clause”)

If you supply goods or services on credit you will know what a hassle it is to have late payers. Your business terms and conditions should specify that if payments are made late then interest will be charged. The interest must be a “genuine pre-estimate of your loss” or else it will, by law, be a “penalty” and therefore unenforceable.

Delivery of Goods or Services

If there is a contract for time bound delivery, the terms and conditions should mention the date and time of delivery and circumstances that will give you the right to extend that time. Do not forget to specify whether weekends and other holidays are included in that time frame.

Conditions for Early Termination

In contracts for provision of services the terms and conditions should clearly mention the fees and charges that you will be entitled to in case of early termination of the contract by the other party.

Shipping and Handling Charges

The terms and conditions should clearly specify whether the price of the product includes shipping and handling charges or whether shipping and handling will be charged separately.

The above items are only some of the common clauses that business owners have been known to completely overlook in their business terms and conditions. It is important that you periodically review your terms and conditions to ensure they are up to date with current legislation. Learn from your bad experiences with customers and consider whether they could have been avoided by having the right terms and conditions. Here at Fox & Staniland we can create a contract for you that will support your best interests and be legally enforceable.