It is important for trading businesses supplying goods or services to have trading terms. They define the obligations of the business and limit its liability when things go wrong.
The terms should take account of whether the business is supplying other businesses or consumers or both. Selling to consumers, particularly through the internet, is highly regulated and provisions which may be appropriate in a business-to-business context may be unlawful and ineffective in the case of a consumer customer.
The terms should be prepared for the business rather than off the shelf or copied from another business because if the terms do not reflect how the company’s business is actually carried out and its sale processes there is a real risk that they will not be effectively incorporated into the contract.
Also, many important provisions in the terms which seek directly or indirectly to limit the business’s liability may only be effective to the extent that they are “reasonable” and what is reasonable depends very much upon the circumstances and so will vary from case to case.
In addition to having terms of sale, businesses should also consider having terms of purchase. Where a supplier has terms of sale and a customer has terms of purchase, the two sets of terms are likely to clash and the question arises as to which applies to the contract. This will be determined by what is provided in the terms and also by the circumstances and the other contractual documents and processes.
Our commercial team have extensive experience and expertise in advising on and preparing trading terms for businesses in a wide spectrum of sectors.
If you would like terms of sale or terms of purchase preparing or updating or for any legal advice or assistance in relation to trading terms, please call to speak with one of our specialis contract lawyers on 08081668827.
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Disclaimer:
Information on this website is provided for general information purposes only. It is not intended to constitute and should not be relied upon as legal advice. There are a number of factors and circumstances which may be relevant to legal advice. The law may also have changed before we are able to update the information on this website. If legal advice is required, please contact us on 08081668827.
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