Business Terms & Conditions: Why you should review them.

Business Terms & Conditions: Why you should review them.

If you are in business and have a standard set of Terms & Conditions (T&C’s) (or need some) which you use for your customers, then you should read on.

A well drafted set of T & C’s that is customised for your business and industry should clearly establish the rights and obligations of the parties. By extension, it should also lessen the risk of your business not getting paid, as well as reducing the likelihood of future disputes arising in relation to the agreed terms of the sale. Think of a well drafted set of T&C’s as an up-front insurance policy.

Likewise, things change from time to time and it is important to review your T&C’s periodically as a result. On occasion we have businesses who come to us seeking to enforce a debt or hold a customer’s goods as security for an unpaid debt, only to find that their T&C’sare deficient and/or out-of-date. Under those circumstances recovery can be made that much harder as a result and may lead to the other side being able to obtain a compromise settlement rather than having to pay their debt in full.

As a starting point, ask yourself these simple questions:

  1. Do your T&C’s allow you to charge interest?
  2. Do your T&C’s allow you to recover costs and charges associated with recovery?
  3. Do your T&C’s allow you to hold a customer’s goods as a security for unpaid invoices?
  4. Do your T&C’s allow you to charge storage fees or penalties for contract breaches?
  5. Do your T&C’s comply with recent changes in the Australian Consumer Law and Workplace Health and Safety legislation?

If your answer includes a ‘no’ or you are not sure, then now may be the time to get your T&C’s reviewed and if needs be, updated accordingly. Remember, your next customer maybe your next bad debt.

If you have read this far then we recommend that in the first instance you discuss your situation with us in our SmartMove initial 30-minute discounted consultation, which we offer for $80 and which can be booked through our website or by simply getting in touch. Austral Legal. Practical advice.