Last part one of our blog, I gave the first 5 of 10 key things every business should know about contracts and terms and conditions. Here are the second 5, if you want to follow our upcoming series on the pain points, challenges, and solutions of dealing with terms and conditions, it will make a lot more sense, if you can get your head around these 10 key facts.
6.As businesses grow and owners start to view risk differently and/ or as the volume of business grows, they are interested in recording the terms on which they sell.
See our blog here for further understanding.
7.When businesses start to get even bigger and as their bargaining position strengthens, they want to standardise the terms on which they agree to purchase.
These are supported by contract systems designed to offer maximum protection to larger businesses buying. They have procurement teams and policies and contract handling systems.
8.Terms and conditions of purchase and Terms and conditions of sale are polar opposites.
For example, a seller’s terms and conditions will say that the price can change and a purchaser’s terms and conditions will say the price is fixed. A seller will want to restrict liability for defects etc as much as possible whereas a purchaser will want the seller to be liable for as much as possible.
9.Terms and conditions do not need to be signed to be binding.
They need to be properly incorporated (i.e. legally recognised as the terms that govern the contract sale/ purchase). Your terms may not apply and you could be doing business on very unfavourable terms, without even knowing it!
10.The seller and purchaser want their respective terms to apply to the contract. There is lots of case law about whose terms apply – it’s called Battle of the Forms.
See our blog post here for further information.
If you want to know more or want to make sure you are doing business on your terms, then contact Tracey today: tracey@law-point.co.uk or call 01202 729444.
