Business contracts terms and conditions

Have you ever updated your business contracts, terms and conditions?  Are you starting to sell on the internet or another new market for the first time?  Are you sure your terms and conditions are enforceable in the event of a dispute?  We can help.

Commercial contracts are an essential aspect of business and are a fundamental part of your business’s relationship with customers. Whether you have bespoke contracts for one-off pieces of work or general terms and conditions that apply to all your customers, it is extremely important to get them right.

Why does your business need contracts, terms and conditions?

At the most basic level, professionally drafted contracts or standard terms of business lay out what you agree to provide as goods or services to your customers. Without them, how do you enforce an informally agreed price? We all like to think the best of our customers and believe that nothing will ever go wrong, but from time to time disputes are inevitable. If you don’t have a legal contract you run the risk of not being paid by your customers, or even worse having to pay them!

Common pitfalls we see include not updating contracts when a business changes name, or perhaps changes from a sole trader to a limited company. Maybe the law has changed and parts of a contract are no longer relevant or even legal. Those old terms and conditions which haven’t been looked at for 10 years could mean that you don’t get paid for your work!

Our Commercial and Corporate team are experts at drafting, reviewing and negotiating a wide array of commercial contracts for UK businesses. From supply agreements, through general terms and conditions to licensing agreements we can help ensure your commercial relationships are legally sound.

What should be included in your contracts, terms and conditions?

Business contracts can be as long or as short as you like, depending on the range of circumstances you would like to include specifically. Too long and they become hard to understand, too short and they may not give you the protection and clarity you need. The more bespoke the product, the more likely it is that you will need a detailed, tailored contract to cover the essentials of the work you are to do.

Here are some basics that should be considered in most contracts:

  • Definitions – who is the contract between?

  • Pricing – standard price, discounts for early settlement or bulk purchase etc.

  • Contact details and potential response times

  • Renewal terms and cancellation periods

  • Payment terms – credit terms, interest or penalties for late payment, how payment should be made, what happens on insolvency or bankruptcy etc.

  • Delivery terms – how, when etc.

  • Returns policy – how returns can be made, any enhanced rights over and above statutory rights etc

  • Risk – when does legal title pass from the seller to the buyer

  • Complaints and Disputes – time limits, procedures, including regulatory procedures if applicable

  • Distance selling (if applicable) – this is important if you don’t meet your customers face to face

  • Intellectual property rights – if applicable

  • Guarantees, warranties and indemnities – if applicable

  • Governing law in the event of a dispute, severability of contract terms, whole contract clauses etc

This list is by no means exhaustive, but it gives you an idea of how detailed your terms and conditions might need to be.

How can you get the right contracts, terms and conditions for your business?

At Backhouse Solicitors our friendly team are here to explain the legal jargon and help you put in place the legal contracts that you need to run your business effectively.

For more information and to book a free initial consultation with one of our expert solicitors, contact us today:

Tel:      01245 893400 | 01702 410880
Email: info@backhouse-solicitors.co.uk
Visit our Chelmsford office: 17 Duke Street, Chelmsford, Essex, CM1 1JU
Visit our Leigh-on-Sea office: 22-24 Elm Road, Leigh-on-Sea, Essex, SS9 1SN
Or send us a message through the Contact Us page on this website