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The Importance of Terms and Conditions

Justine Lowe, SME Solicitors’ specialist on Commercial Contracts, underlines the importance of having a strong set of terms for selling goods and/or services in place when conducting business.

Terms and Conditions should clearly define the rights, responsibilities, and expectations of each party to the contract and cover key legal issues to avoid misunderstanding, reduce risk and aid in the swift resolution of any dispute. They should seek to protect both contracting parties and cover matters such as the point at which there is a binding contract, passing of risk and title, payment terms, delivery details, for some intellectual property protection, warranty/standards of performance, limitations of liability, data privacy and termination rights.

A properly drafted set of Terms and Conditions used correctly can help to manage cashflow and seek payment of bad debts and reduce risk in this volatile trading climate. They also add value to the business as trading on a set terms removes an element of the unknown.

If you are dealing with customers on a ‘business to consumer’ basis then there are additional Consumer Rights that you will need to comply with to ensure your contract terms are fair and enforceable. Many businesses standard terms will not be legal when used against a consumer.

Terms and Conditions are essential for any business to protect its interests, manage risks, ensure compliance and maintain good relationships with customers by establishing clear expectations.

For advice on Commercial Contracts or Terms and Conditions, please contact Justine Lowe at or call us on 01905 723561.

Contact details for Justine Lowe

Added: 03 Jun 2024 13:01

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