What are Terms of Trade?
Terms of trade are the guiding document for traders conducting business. They cover aspects like payment, delivery, warranties, and dispute resolution. Also known as Ts&Cs, they form the legal foundation of your transactions.
Why Do You Need Them?
Without clearly defined terms of trade, your business is navigating without direction. While things may run smoothly most of the time, having well-drafted terms can be a lifesaver when dealing with challenging customers. Additionally, they allow you to set the conditions of engagement—what’s not to appreciate?
When Should You Provide Terms of Trade?
Always. Every time. Ensure your customers are aware of and agree to your terms before or at the point of sale (even if they don’t thoroughly read the fine print). If updates are made, notify existing customers to avoid confusion—nothing says "new terms" like a courteous heads-up!
Common Terms to Include:
Fees & Payment: Clearly state when and how payments are to be made, and the consequences of late payment. Consider including a clause for interest on overdue amounts—just in case.
Delivery, Risk & Title: Clarify that ownership of goods remains with you until full payment is received. No exceptions here.
Intellectual Property: Safeguard your creative work—whether it’s branding, design, or content. Specify how it can be used and outline restrictions.
Force Majeure: In cases of unforeseen events like a pandemic or natural disaster, this clause allows for a temporary suspension of obligations without liability.
Dispute Resolution: Before resorting to litigation, this clause outlines a formal process such as mediation. Think of it as a professional way to resolve issues amicably.
Are There Limits to Terms?
Yes. Terms must be fair under the Fair Trading Act 1986. They should protect your business interests without crossing the line into unreasonable or unfair practices.
How to Create Terms of Trade?
You can draft them yourself using templates, use an online service, or consult a professional (like a lawyer). Whichever approach you choose, ensure your terms are clear, reasonable, and tailored to your specific business needs.
Need Help?
Need assistance with refining your terms of trade? Gemma at iCLAW (gemma@iclaw.com) is here to help. Don’t wait until an issue arises—get your terms in order now!