The importance of terms and conditions

Terms and Conditions (‘T&Cs’) are in essence the legal basis on which you are willing to do business with your customers. T&C’s are vital for any business and must be the first legal document that you put in place when you commence operating your business.

If you have well drafted T&Cs in plain English, it will be clear:

  • what a customer’s obligations are to your business (for example your terms of payment);
  • what happens where a customer has breached the T&Cs;
  • what your obligations are to a customer so that there are not any misconceived expectations on their part.

Most importantly, clear T&Cs are much easier to enforce should you wish to take a customer to court (for example for failure to pay) as opposed to an oral agreement or an agreement based on a convoluted chain of emails.

A lawyer will not only consider the basic terms that are of primary importance to your business such as the price of your service, terms of payment and any default provisions, but will also consider terms to limit your liability, protect your intellectual property rights and the passing of title and risk. A well drafted set of T&Cs will ensure your business’ position is protected.

Once T&Cs are in place you must ensure that they are used on a consistent basis by your business.

If you have any queries regarding T&Cs please do not hesitate to contact us on 08 9422 8111 or buslaw@taitlegal.com.au.