WHY GETTING BUSINESS TERMS AND CONDITIONS IS CRITICAL
Businesses enter into arrangements with customers every day.
They may be contracts for small or large amounts of money, and may
have short or long term implications. Their Business Terms and
Conditions are the basis on which these arrangements are
In order to prevent a dispute down the track, and to increase
the chances of being paid, business terms and conditions should
always be in writing. In addition, Businesses should ensure they
have had their Terms and Conditions reviewed before using them with
customers. Not all contracts are created equal.
We too often see Business owners who do not understand the terms
and conditions of the agreements they are using with their
customers. This can lead to a failure to comply with their
obligations or an inability to enforce a debt. Many businesses are
Some common problems with terms and conditions are:
They do not set out what and when payment is to be made;
They are unclear as to what happens if a product or service is
They do not specify how refunds can be obtained;
They do not have guarantors who guarantee payment;
They do not comply with the Australian Consumer Law and other
What may seem like unnecessary legal jargon can be essential in
protecting you against unnecessary risks, reducing bad debts and
helping business transactions progress smoothly.
If you are a customer, it is equally important that you obtain
legal advice on any terms and conditions before entering into them
to ensure that they will not unfairly prejudice you in your
dealings with a business in the future.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Do not depart from the contract terms, or encourage the other party to do so, unless you plan to alter the contract.
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