Although agreements for the sale of goods can be made verbally, it's always better to have something in writing and sometimes this is a requirement. When dealing with another business, the parties are generally freer to agree on terms of business between themselves than when dealing with consumers, as there is a lot of consumer protection legislation. When using standard terms and conditions, it's particularly important to make sure you know who you are dealing with and whether they are purchasing for a business or as a consumer. The main advantage of using standard T&Cs is that they give you control over how the goods are sold. Terms and Conditions for the sale of goods to business customers cover a whole range of matters, which can include orders, delivery, pricing, payment, risk, warranties, defects, liability and confidentiality.
Contracts, including terms and conditions setting out the basis on which goods or services are sold, are a vital part of businesses. Whether goods and services are sold on a standard basis or to specification, standard terms and conditions of sale are a core part of most businesses. The specific, or unique, aspects of the sale (eg any unique specifications, quantity, delivery dates) are set out in a separate order. Make sure that you protect your business interests with professionally prepared T&Cs. For further information, read Terms and conditions.
Standard terms and conditions for the sale of goods or supply of services help to make everyone aware of their rights and obligations from the outset and allow the parties to focus their energy on agreeing on the specifics of a particular order. When it comes to consumers, there is in addition a considerable amount of legislation, aimed at protecting consumers, which must be taken into account when drafting T&Cs.
Terms and conditions for sale of goods to business customers
Terms and conditions for supply of services to business customers
Provision of services to other businesses will require different T&Cs compared to the sale of goods. There are issues such as timing and termination of supply that are unique to these types of contracts. Although binding contracts can be made verbally, it's far better to put in place watertight Terms and conditions for the supply of services to business customers. T&Cs for the supply of services to business customers may deal with issues such as orders, specifications, obligations, pricing, payment, intellectual property, confidentiality, warranties, liability and termination.
Terms and conditions for sale of goods to consumers
When you are selling goods to customers not acting in the course of a business, your terms and conditions are more restricted as a result of consumer legislation, such as the Consumer Rights Act. However, this makes it even more important that your T&Cs are professionally written, to take account of the various consumer rules, failing which the T&Cs could be invalid. You should demonstrate that you are aware of all your duties when dealing with a consumer and outlining their rights and obligations will help to avoid future problems. Properly prepared Terms and conditions for sale of goods to consumers will deal with issues such as orders, delivery, pricing, payment, guarantees, cancellation, liability and data protection. For further information, read Doing business with consumers
Terms and conditions for supply of services to consumers
If you're providing services to consumers, you'll have to take account of issues such as timing or termination, so these types of T&Cs will be different from one dealing with the sale of goods. Consumer legislation also imposes different kinds of rules when it comes to services, such as the right of a consumer to cancel within 14 days of entering into a service contract. It's important that your Terms and conditions for supply of services to consumers are straightforward and comprehensive so that customers know where they stand and needless disputes can be avoided. The T&Cs should cover a range of key issues such as orders, supply, customer responsibilities, pricing, payment, guarantees, liability, cancellation and termination and data protection. For further information, read Doing business with consumers.
Choosing the right terms and conditions
Choosing the right terms and conditions will depend entirely on who you are selling to, what you are selling and the forum you are selling (ie online or via a website). These different factors will determine what T&Cs you should be using. For further information, read How to choose the right terms and conditions.
Why is data protection so important?
In light of the laws on data protection, it is important that businesses are compliant. Having a comprehensive set of terms and conditions enables you to set out your approach to data protection compliance, helping to inform your customers how their personal information will be protected.