The importance of terms and conditions when starting a business

As a new business, the focus is always on generating clients and selling goods or services. Without a contract or terms and conditions of business, it will be difficult for a new business to clearly show what they have agreed to provide (and what they won’t do) for their charges. 

 

Not many businesses can command the full payment of the price on account before starting work which is why terms and conditions are so important, to clearly identify payment terms and the consequences of a client failing to make payment. 

 

There is also a compliance element for business owners. The Consumer Rights Act 2015 has imposed new measures for businesses who sell to consumers. There are also specific rules for online businesses which must be followed. 

 

What should our terms and conditions cover? 

 

Having clear and robust terms and conditions means that businesses: 

-    are more likely to avoid ambiguity and misunderstanding about what they are selling; 
-    can identify the customer’s or client’s obligations to you; 
-    can clearly set out when and how they require payment; 
-    clarify what happens if their payment is late (for example, you can decide when and how much interest you will charge); and 
-    can comply with important legal obligations (such as telling consumers about their legal rights regarding cancellation). 


What happens if you don’t have terms and conditions? 

 

Without a contract or any terms and conditions setting out your trading terms, businesses will have to rely on what evidence they have to show their terms of business have been legally incorporated in their contract with their clients. This may prove a difficult task. 

 

If your business does not have any written contractual terms, this may appear less professional to prospective customers or clients.  

 

Terms and conditions don’t need to be daunting

 

At AMD Solicitors, we have a team of experienced commercial solicitors in Bristol who have written terms and conditions for all types of business, large and small. 

For an initial discussion about your business’ terms and conditions email the Head of the Commercial Department, Tony Moore at tonymoore@amdsolicitors.com or telephone Tony on 0117 973 39 89


This article is provided for general information purposes only and represents our understanding of the relevant law and practice as at the date of uploading. This article should not be relied upon as legal advice pertaining to any specific factual situation. Legal decisions should be made only after proper consultation with a legal professional of your choosing.


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