Common problems
Problems often arise when the customer:
- asserts the seller of the goods and/or services has not delivered what they were expecting and/or when they were expecting it
- asserts the services and/or goods are defective or are perceived to be defective, so the customer believes he is entitled to withhold all or some of the payment due
- simply fails to pay.
Trading terms
I often see clients with no written express terms, or sometimes worse still they have ‘cobbled together’ a set downloaded off the internet, which are entirely unsuitable and, in some cases, put the business in a worse position than it would have been in by having no written terms at all.
It is vital that businesses manage risk by ensuring they have in place bespoke and up-to-date trading terms that are commercially fair and protect the business.
If there are well-drafted terms in place and a dispute arises, terms will establish in the first instance whether the commercial term in question, to include:
- price and payment terms
- delivery terms
- quality of goods and/or services
- insurance arrangements and the passing of ownership and risk to the buyer
- ownership of and protecting your intellectual property rights.
- guarantee and warranty terms, namely what will happen in specific circumstances
One of these matters are usually at the centre of a dispute and the first question has to be is the relevant point the seller is wanting to rely on actually a term of the contract? It is only when this has been established that a lawyer/court will be able to go on and consider whether the term in question has been breached.
Furthermore, it is necessary to consider if specific regulations apply to your industry or sector. If so, this can be addressed in the terms to ensure legal compliance.
As a business owner myself, I appreciate the day-to-day pressures of running a business. However, it is essential to manage risk and ensure you have in place a clear, well-drafted set of terms that protect your business, so as to limit financial exposure in line with insurance cover. By having no trading terms or the ‘wrong’ trading terms in place, you can invalidate your insurance indemnity cover, leaving the business exposed.
The worst-case scenario is if something goes wrong, you find your business is uninsured and you are potentially personally liable with your own assets, namely your house, vehicles and savings, at risk.
Properly drafted terms and conditions that work with your insurance cover are the cornerstone of your business. Don’t open your hypothetical “door for trade” without effective terms in place. Finally, equally important, is you need to know how to use your terms. Like most things in life, timing really is everything.
For further guidance or more information on trading terms, contact Kaye Whitby or one of our commercial law experts.
Common problems
Problems often arise when the customer:
- asserts the seller of the goods and/or services has not delivered what they were expecting and/or when they were expecting it
- asserts the services and/or goods are defective or are perceived to be defective, so the customer believes he is entitled to withhold all or some of the payment due
- simply fails to pay.
Trading terms
I often see clients with no written express terms, or sometimes worse still they have ‘cobbled together’ a set downloaded off the internet, which are entirely unsuitable and, in some cases, put the business in a worse position than it would have been in by having no written terms at all.
It is vital that businesses manage risk by ensuring they have in place bespoke and up-to-date trading terms that are commercially fair and protect the business.
If there are well-drafted terms in place and a dispute arises, terms will establish in the first instance whether the commercial term in question, to include:
- price and payment terms
- delivery terms
- quality of goods and/or services
- insurance arrangements and the passing of ownership and risk to the buyer
- ownership of and protecting your intellectual property rights.
- guarantee and warranty terms, namely what will happen in specific circumstances
One of these matters are usually at the centre of a dispute and the first question has to be is the relevant point the seller is wanting to rely on actually a term of the contract? It is only when this has been established that a lawyer/court will be able to go on and consider whether the term in question has been breached.
Furthermore, it is necessary to consider if specific regulations apply to your industry or sector. If so, this can be addressed in the terms to ensure legal compliance.
As a business owner myself, I appreciate the day-to-day pressures of running a business. However, it is essential to manage risk and ensure you have in place a clear, well-drafted set of terms that protect your business, so as to limit financial exposure in line with insurance cover. By having no trading terms or the ‘wrong’ trading terms in place, you can invalidate your insurance indemnity cover, leaving the business exposed.
The worst-case scenario is if something goes wrong, you find your business is uninsured and you are potentially personally liable with your own assets, namely your house, vehicles and savings, at risk.
Properly drafted terms and conditions that work with your insurance cover are the cornerstone of your business. Don’t open your hypothetical “door for trade” without effective terms in place. Finally, equally important, is you need to know how to use your terms. Like most things in life, timing really is everything.
For further guidance or more information on trading terms, contact Kaye Whitby or one of our commercial law experts.