To have a successful business, there are numerous factors which need pre- planning. This includes your businesses terms and conditions. As a new business, the major focus is on attracting new clients. Terms and conditions will set out the obligations for your clients when they agree to enter into business with you. Businesses that do not have clearly drawn-up terms and conditions may be placing the business at risk and may face further financial consequences.
Terms and conditions are vital for many businesses and are essential to minimise legal disputes and protect your business. It also provides certainty to your clients; they will know what to expect and what their rights are when they choose to do business with you.
What should be covered?
A well-drafted document should serve as a manual for carrying out the business with absolute clarity.
Terms and conditions should clearly set-out and cover the areas of:
- Intellectual property
- Governing law and legal obligations
- Customer or client obligations to you
- Payment and billing terms
- Termination and suspension
How to make terms and conditions for your business?
Sometimes small business owners are tempted to use the terms and conditions of another similar business or use a template they may have found while browsing the web. It is important to understand that every business and their processes are different, so using terms and conditions from other sites may not provide adequate protection to your business. In fact, incorrect terms can turn out to be even more risky.
To ensure you are creating the correct terms and conditions specific to your business it is recommended to seek guidance or consult a commercial lawyer. They will be able to customise terms and conditions for your business and ensure you understand all legal obligations. It is a fast and cost-effective measure to ensure a smooth-running business and in turn, can save you in the long run.
In the case of a website, terms and conditions can be added to the website or as a link when users sign-up or register to use online services.
Terms and conditions should be shared before a transaction occurs.
At Aspire, we have an experienced team of commercial and business lawyers. Our lawyers have helped many businesses successfully start-up and prepare their terms and conditions. To get in touch with our Commercial Law team call 03 9743 1333 or email .