My day job is so serious, writing silly poetry is a bit of light relief and uses the other side of my brain! At Christmas, I wrote a poem about an elf who found himself having to think about the nuisance of contracts when he just wanted to get on with the job in hand. Sound familiar?! Behind every verse in this poem is a serious point and a serious amount of experience and pain of myself and others who are involved in the contracting process. Over the coming months, we’ll be addressing some of these pain points, challenges, and solutions.
Before we start these blogs, there are 10 key things every business should know about contracts and terms & conditions.
1.A contract is a legally binding agreement between buyer and seller to buy or sell goods and/or services on certain terms, which will include payment or another benefit.
Think of a contract as a generic phrase that means you are legally bound to deliver your part and the terms are the detail of that contract.
2.A contract does not (generally) have to be in writing.
There are a few exceptions to this, e.g. contracts for the sale of real estate. Generally, contracts can be written, oral, or a mixture of both.
3.If you are buying or selling goods or services there will always be a contract – even if there is nothing in writing.
The issue will be on what basis has your business decided to buy or sell those goods and/or services. What are the terms that you have agreed to? For example, what was the price, when will you pay, who is liable for what? If there is a dispute, it is easier to point to one document which is stated to record all the terms of the contract that the business has agreed to buy/ sell on.
4.Terms and conditions are a way of recording the contract in writing, i.e. the basis on which the goods and/or services are bought or sold.
This is an attempt to record all of the terms of the contract for sale or purchase in one document.
5.Terms & conditions are a way of standardising the way in which businesses buy or sell goods and/or services.
The volume and pace of business life have grown and so finding ways to standardise contracting is both cost and time effective, so terms and conditions were born.
Keep your eyes peeled for the next 5 things a business should know next week. In the meantime, if you have any questions, then please contact Tracey: tracey@law-point.co.uk or call 01202 729444.
