If you supply goods or services this article is written for you!

Many business transactions involving the supply of goods or services are based on a verbal contract. This will often fail to protect your business against risks associated with the transaction.

Reasons why your business should have specially written terms of trade include:

• Clarifying your obligations as to date of supply, acceptance of orders, quality, price quotes, price estimates, and price increases, 
• Explaining the extent of any guarantee you give, or any manufacturer’s warranty,
  
• Defining the extent of your responsibilities, particularly where the performance of the goods or services can be affected by circumstances beyond your control,
  
• Limiting your liability,
  
• Where allowed, altering terms implied by statute,
  
• Establishing any credit terms and when payment is due,
  
• Specifying dispute resolution procedures,
  
• Retaining title to goods and taking security interests in products supplied, and
  
• Protecting intellectual property rights 

Some of these issues have been covered in previous articles (contact us if you want a reprint) and others will be covered in the future. That’s no reason for you to delay seeking our advice today!

You may obtain good ideas from other businesses’ terms of trade, but adopting what other people use for their terms of trade could be very risky for you. The terms of trade for your business need to reflect what you require because of how you carry on your business, and we can help you do that.

As a business person, when was the last time you did a reality check to ensure that your terms of trade were up-to-date, and reflected your requirements in today’s marketplace? With changes in technology (such as the Internet and email), business processes, and the law, a regular review of your business terms of trade is essential.