Most businesses understand the need to get a set of terms and conditions in place to set out the basis on which they sell their goods and/or services. This, however, is only half the story.
Many businesses who have taken the step to have bespoke terms and conditions written for them, will then need to decide as to whether or not they need the terms and conditions signed by the customer or whether they are going to rely on the rules that surround incorporating the terms into the contract with the customer, without getting them signed.
If going with the unsigned option, it is necessary to make sure that your customer has had the chance to see the terms and conditions before they agree to purchase your goods or services. This may sound obvious but a whole body of case law has developed around this very point. A common mistake of most businesses is to refer to the terms and conditions on their invoice and if this is the only place that the terms get a mention, in most cases, it is too late! (That said, there are some exceptions to this, and there is no harm in referring to your terms on your invoices as well as in all other sales documentation).
So, when should you notify your customer of your terms? As soon as possible and at every stage in the sales process from quotation all the way through to invoice.
And, if you are fortunate enough to be dealing with large firms, watch out for those purchase orders! If your customer/ client’s purchase order says that the purchase is subject to their terms unless you find a way to send your terms, before delivery, then the chances are that you will have sold your goods/ services to the customer on the customer’s terms and we can guarantee you, they will not be half as favorable as yours! (See our blog Don’t get caught in a battle).
In reality, businesses develop contracting processes which usually involve a combination of signed terms processes and unsigned terms processes based on certain risk criteria.
If you want any further information regarding contracting processes or terms and conditions, contact tracey@law-point.co.uk or call 01202 729444.
